Mortgage and Rates News

This blog post will be updated from time to time so check back to see what's happening.

7-6-2011: In some counties across the US, Fannie and Freddie loan limits will be lowered to $417,000 (which is about the limit of current loan limits in the Atlanta area) and about $271,050 for FHA loans which I think is less than the limit now used in the Atlanta metro area.  Source:  http://online.wsj.com/article/SB10001424052702303763404576420101788878440.html?mod=WSJ_RealEstate_LeftTopNews

3-11-2011:  Atlanta Business Chronicle reports (3/11-17/2011,15A) that about 42% of homeowners in Atlanta near or below negative equity. (About 34% are at negative equity.)

1-11-2011:  Apparently in 2010, cash in mortgage refinancing (i.e., loans to reduce mortgage balance or interest) rose to 33% and cash out refinance mortgages fell to 18%....Are we learning yet?

12-27-2010:  About 70% of fixed rate mortgages guaranteed by Fannie, Freddie, or FHA/VA is at least 1% above current rates (as of September 2010, but rates have risen since then.)

12-27-2010:  The mortgage industry is expected to issue $480 Billion of new purchase mortgages in 2010 and about $626 Billion in 2011.  Also, about $921 Billion in refinance mortgages in 2010 and estimated $370 Billion in 2011.

12-27-2010:  Old rule of thumb, every 1% rise in mortgage rates results in a 10% increase in home prices.

11-6-2010:  Rates fell for most programs except for a slight increase in the 30 year fixed rate to 4.24%.

10-22-2010:  Mortgage rates are still low by historical terms and may be remaining somewhat stable, but not many people buying or refinancing as much anymore for several reasons.  Concern about future employment; falling real estate prices; most people who were in a position to purchase due to non-refundable tax credit or refinance already have executed their transactions.

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