DailyMORTGAGE LOCK ADVISORY
October 1, 2012, 6:30 AM PST
30 Day Mortgage Interest Rate Lock or Float Advice: FLOAT.
MORTGAGE MARKET INDICATORS
National Average Fixed Rate Mortgage 3.40%
MBS (3.5%) - 105.73, High: 105.73, Low: 105.47
DJI Stocks closed at $13,476.98, Up $39.85, Change 0.296%
Asian & European Stock Market Indexes Up 1.097%
Nymex Crude Oil Currently $93.21 Up $1.02
Gold 1 Once - 1788.15
As lenders plow through a backlog of over five million delinquent mortgages, short sales are becoming an ever more popular escape route. A short sale is when the bank allows a home to be sold for less than the value of the mortgage. The bank takes the loss, but that loss is generally less than a more costly foreclosure.
The government has been pushing more short sales at Fannie Mae and Freddie Mac through financial incentives, and banks are streamlining the process. Short sales have been gaining so much steam, they actually surpassed sales of foreclosed properties last spring, according to LPS Applied Analytics' Home Price Index. But all the progress that has been made could end abruptly. >>CNBC
by Matthew Graham
Mortgage rates finally broke their unprecedented winning streak on Thursday as rates moved higher for the first time since the Fed announced it's third round of quantitative easing on September 14th. The 10 straight sessions of improving rates crossed into new all-time low territory earlier this week, and even after today's weakness, it's still the 3rd best day in the history of mortgage rates. Best execution levels continue hovering firmly at 3.25% for 30yr Fixed Conventional Loans >>Mortgage News Daily
by Scholastica (Gay) Cororaton, Approximately 31 percent of REALTORS® who responded to the latest REALTORS® Confidence Index survey reported making a sale to first-time home buyers. Normally first-time buyers are in the neighborhood of 40 percent of total residential sales, according to NAR's Profile of Home Buyers and Sellers. The proportion of first-time home buyers hit a peak of approximately 50 percent in 2009. Most first-time buyers obtain a mortgage: About 8.7 percent of REALTORS® who made a first-time home buyer sale reported a cash sale (compared to 10.8 percent in July). National Association of Realors
Mortgage rates begin the week at new all-time lows yet again after falling significantly from last week's series of previous all-time lows. Markets have been quite calm during domestic hours, but interest rates moved slightly lower overnight before domestic trading hours. With bond markets holding steady to slightly improved since then, mortgage lenders continue to pass on those improvements in the form of more aggressive rate sheets. >>Mortgage News Daily
The time it took to close a loan was 49 days in August, up just one day from July's closing time.
Refinance closings took a little longer than purchase closings in August, same as July. It took 51 days to close a refinance loan in August, up fom 48 days in July.>> MReport
By Karen Freifeld
NEW YORK (Reuters) - The mortgage task force formed by President Barack Obama to probe misconduct that contributed to the financial crisis will soon take legal action, New York Attorney General Eric Schneiderman said on Thursday. >>Reuters
Applications for mortgages during the week ended September 14 were virtually unchanged from the previous week according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey. The Market Composite Index, a measure of loan application volume, increased 0.2 percent on a seasonally adjusted basis during the week which was shortened by the Labor Day holiday. On an unadjusted basis it rose 24 percent. >>Mortgage News Daily
Fannie Mae notified remaining vendors that the government-sponsored enterprise will transition all REO sales work completely to Fannie Mae's in-house teams over the course of the next several months. >>Housingwire
by Jann Swanson Late Friday Fannie Mae gave borrowers and lenders an alternative to documenting income for Refi Plus loans where payment increases will be under 20 percent. Rather than requiring that at least one of the borrowers has a documented source of income, Fannie Mae will now accept verification of liquid financial reserves equal to at least 12 months of the new mortgage payment (PITIA). >> Mortgage News Daily