Refinance News

Average rates for 30-year and 15-year fixed mortgages fell to record lows for a third straight week. According to Freddie Mac, the average rate on 30-year loans dipped to 3.79% decreasing 3.83% compared to last week. These are lowest mortgage rates since long term mortgage loans began in the 1950s.

Lee Farkas, the former chairman of Taylor Bean & Whitaker (TBW) was recently sentenced to 30 years in prison. Farkas was convicted of a 2.9 billion dollar fraud scheme making the highest ranking executive to go to prison during the financial crisis.

Charges included allegations he misappropriated more than $1.4bn from Colonial Bank’s mortgage warehouse lending division to keep TBW afloat. The fraud, which began in 2002, contributed to the failure of Colonial Bank in 2009 and had far reaching effects throughout the US economy.

Farkas was also ordered to relinquish 38.5 million dollars. I wonder how much more money he has hidden away.

I'm sure that people who like to see the Wall Street Executives that contributed to the financial crisis experience a similar fate. Many Wall Street Executives contributed in a similar manner causing the same, if not more, devastation than Farkas.

The National Association of Realtor said that home sales dipped 3.8% from the prior month. Sales of previously owned U.S. homes fell to a six-month low in May and prices dropped 4.6%. This can be a pretext to a second real estate down turn. This should concern homeowners interestest in refnancing because lenders may be more hesitant lendng money. Also, homeowners are going to find that their equity in their homes are decreasing which may make it more diffcult to qualify with ltv guidelines.

Take advantage now while you can. Rates are low so homeowners that can qualify may find this an oppertune time to refinance.

Last Thursday, the average rate on the 30 yr fixed mortgage fell to 4.61%. That's down from 4.63% and the lowest level since mid-December.

The average rate on the 15 year fixed mortgage, a popular refinance option, slipped to 3.80% from 3.82%. That is the lowest point since late November for a 15 yr fixed mortgage rate.

Homeowners and first time buyers should consider refinancing or obtaining a mortgage before rates increase. Contact your mortgage professional to see what make sense for your situation.

Mortgage rates continue to climb to their 5 month high as investors sell treasuries. This past week rates increased .15% to 4.61% on the average 30 year mortgage. The previous 30 year average was 4.46%. Many borrowers that haven't taken advantage of these records low rates are still scrambling to qualify for a mortgage. Borrowers should speak with their mortgage professional to see if they can qualify and whether they are able to save money refinancing their present mortgage.

Mortgage applications fell last week .09%. While purchase applications increases 1.8%, refinance applications, which are a greater portion of the mortgage application universe, decreased 1.4%.

The increase in the purchase applications is a good sign but it may only be a one time occurrence. It may not be a sign of a strengthening real estate marketing. We will have to wait for more numbers to see if purchase applications continue to trend upwards. Expect refinance applications to fall if mortgage rates continue to rise.

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