Mortgage Rates Trend Downward for Third Straight Week

The summer of 2013 saw long-term mortgage rates ticking up well past the 4 percent mark and nearly touch 5 percent for the first time in close to two years.  Since their peak, home loan rates have started a trend downward, creating renewed opportunities for buyers and current owners.

The Primary Mortgage Market Survey from Freddie Mac, for the week ending Oct. 3, found the 30-year fixed-rate mortgage average at 4.22 percent, which is down from the 4.32 percent recorded the week before. To put that number in perspective, the 30-year FRM average was 3.36 percent this time last year.

However, to put these numbers in even greater perspective, Oct. 3 marked the third consecutive week of average mortgage rates falling, which is a good sign for prospective borrowers who were helped by a decline in consumer confidence and the federal government shutting down, as well.

“With the onset of the federal government shutdown and declining consumer confidence, fixed mortgage rates fell for the third consecutive week,” said Frank Nothaft, vice president and chief economist at Freddie Mac.  “Consumer sentiment fell for the second month in a row in September to its lowest reading since April, according to the University of Michigan.  Moreover, a recent Bloomberg survey of professional forecasters suggests that a partial federal shutdown lasting one week would shave 0.1 percentage points off of GDP growth in the fourth quarter and even more if the shutdown lasts longer.”

While it remains to be seen where mortgage rates will go from here, some economists predict they could fall further over the rest of the year to help offset the slowdown in home buying activity that is typically experienced in many parts of the country during the fall and winter months.

If you’d like to know more about your financing options, contact us today.  Our team of mortgage professionals have been serving the greater North Texas area for over 75 years combined and would love to help you customize your Dallas mortgage.

Mortgage Rates Remain on Upward Trajectory

The U.S. economy is showing strong signs of improvement, which is in turn easing some of the regulation on the housing market and has led to an increase in mortgage rate averages.

Freddie Mac’s Primary Mortgage Market Survey for the week ending Sept. 5 showed that 30-year fixed-rate mortgage averaged surpassed the 4.5 percent mark. That is nearly a full percentage point higher than the 3.5 percent 30-year fixed-rate mortgage average recorded this week last year.

“Mortgage rates edged up this week on signs of a stronger economic recovery,” said Frank Nothaft, vice president and chief economist at Freddie Mac. “Real GDP was revised upwards to 2.5 percent growth in the second quarter of this year. In addition, residential construction spending rose for a ninth consecutive month in July. Lastly, the manufacturing industry expanded by the fastest pace in August since June 2011.”

The 15-year fixed-rate mortgage average hit nearly 3.6 percent for the same week, up substantially from the same week last year when it was nearly 2.9 percent.

Picking apart mortgage rates

Although no prospective home owner wants to learn that long-term mortgage rate averages are trending upward, the fact remains that the news is till relatively good as the housing market is posting strong enough gains to encourage the upward mobility of mortgage rates as they no longer need to be pushed below the 4 percent mark just to encourage home buying.

Also, it’s important to keep in mind that these long-term mortgage rate averages are simply that: averages. The contracted rate is different for every home buyer, and if factors like your credit score, are strong enough then you could see your contracted mortgage rate fall substantially below the national average.

If you’d like to learn more about the home buying process, obtaining a mortgage and the multiple options available when it comes to financing, contact us today. We are mortgage professionals who’d love to get you on your way.

Dallas-Area Mortgage Payment Delinquencies and Foreclosures Are Dropping

In an upbeat report that parallels the vast housing recovery that has been seen both nationwide and in the greater Dallas area in 2013, a recent article from The Dallas Morning News reported that both mortgage payment delinquencies and foreclosure rates are dropping for Dallas-area homeowners. These trends could be symptomatic of several things, including government streamline refinancing programs for underwater borrowers like the Home Affordable Refinancing Act (HARP), and also the fact that the economy as a whole is strengthening as a side-effect of the housing market uptick, leading to more financial opportunities for the American workforce. Here are the specifics of what the aforementioned report entails:

Mortgage-Payment Delinquencies Dropping

Real estate analytics company CoreLogic reported in recent findings that while 4.75 percent of all Dallas-area homeowners were behind on their mortgage payments in April of 2012, only 3.83 percent of this data pool were behind on mortgage payments at the same time this year, representing an almost one percent drop in the number of Dallas-area delinquent mortgages. What’s more, the April 2013 data marked the first time since the recession began that Dallas mortgage delinquency rates have been below 4 percent. And the numbers look even better when compared with the national delinquency rate as recorded in that study, which comes in at 5.76 percent.

Foreclosure Rates Dropping

The same CoreLogic study found that Dallas foreclosure rates had dropped year-over-year from April 2012 to April 2013 as well. In contrast with last year’s rate of 1.65 percent at that time, this year’s rate had dropped to 1.21 percent. These numbers also come in light of an attached report by The Dallas Morning News that saw foreclosure filings down forty percent in the Dallas-Fort Worth area in comparison with where they were at for the first six months of 2012.

We are Dallas mortgage specialists who have helped countless satisfied homeowners find the perfect mortgage plan for their Dallas-area home. Please contact us today, as it would be our pleasure to assist you with all your mortgage needs.

Taking Your Time Shopping for a Dallas Home? Mortgage Rates are Rising

With the rates rising from their historic lows, home buyers can tend to get complacent and think that they have all of the time in the world to make up their minds on whether they should sell their home and buy a new one.  A lingering low supply of homes for sale in Dallas and around the country, combined with rising mortgage rates, the best time to buy may be right this moment.  Contact a mortgage planner to get the ball rolling and find out your options to buy or sell your Dallas home before rates and home prices rise.

In recent months, while the housing market has been in recovery, it wasn’t uncommon to see mortgage interest rates below four percent, in some cases as low as 3.25% as recent as May ’13!  However, times are changing and the Mortgage Bankers Association projects interest rates to continue increasing by the end of the year.

The economy as a whole has seen conditions improve.  In addition, the Federal Reserve, who has been cushioning mortgage rates by purchasing mortgage-backed securities to the tune of $85 Billion per month, has started to hint at an end to their purchase program.  The act of purchasing these securities has kept mortgage rates artificially low.  With decreased involvement from the Fed and their purchase program, mortgage interest rates are only likely to rise.

Improved economic conditions helps drive demand for housing.  Low inventory and rising rates create a frenzy for hungry buyers.  If you need guidance to find out if you need to sell before you buy or would like to know what your options are to get pre-approval for your prospective Dallas home, please don’t hesitate to call us directly, 972-499-0454, or Contact Us.

Unconventional Ways to Save on the Mortgage on Your Dallas Home

Are you making the most out of your mortgage?  While there are several ways for you to save money on your mortgage, some aren’t as common as the rest.  If you want to save a few bucks on the mortgage on your Dallas home, keep these unconventional money-savers in mind and make sure you contact a qualified mortgage professional for more ideas.

• Payments are made monthly on a mortgage; however, there is no rule saying that you can’t make a 13th payment on your mortgage. Making an extra payment on your mortgage every year can cut some serious time off of its overall length.  In fact, if you make that 13th payment on your mortgage every consecutive year, you can shave up to 6 years off of your Dallas home’s mortgage, depending on the amount you’ve borrowed.  This strategy can easily be accomplished by making bi-weekly payments.  The 2 payments per month add up to the 13th payment!

• If the fact of the matter is that you have a tight, strict budget that a 13th payment wouldn’t fit into, or would make too complicated, round up your payments to the nearest hundredth.  Doing this won’t be as detrimental to your budget and will help chip away faster at the mortgage on your Dallas, Texas home.  Let’s say your payment is $915—round it up to a clean $1,000, as this small increase can make a huge difference over the life of your loan.  In fact, the Federal Reserve Board calculated that if you put an extra $50 on your payment every month, it adds up to almost $30,000 in savings throughout the life of your loan for a 30-year loan with a 6 percent mortgage interest rate.

• If you plan on paying a large amount towards your mortgage (principal reduction payment), contact your loan servicer first.  Some lenders allow a recast of your loan after a lump sum principal reduction payment.  That means they will recalculate your mortgage payment based on the new balance of your loan.  This can not only reduce the monthly payment, but can potentially help save thousands of dollars in interest.

For a helping hand throughout the mortgage process for your prospective Dallas home, please don’t hesitate to get in touch with us, 972-499-0454 – or contact us today!

What You Need to Know About the Mortgage on Your Dallas Home

The real estate market is recovering. Home prices are going up and mortgage rates are slowly rising, making right now a prime time to enter the market for many home buyers. However, before you purchase a Dallas home, knowing the ins and outs of a mortgage is of paramount importance to your family’s finances. Keep the following in mind and consult a qualified mortgage broker to get headed in the right direction.

• One common mistake home buyers make in regard to their mortgage is making the calculations of the total cost based on the interest rate of their mortgage. In fact, according to Fox Business, the total cost of your mortgage is calculated with your annual percentage rate (APR). APR is an all-encompassing rate that not only takes your mortgage interest rate into account, but also your points, mortgage insurance, underwriting fees and origination fees, which gives you a much more accurate number when calculating total costs for your Dallas home.

• Another misconception about mortgages, particularly mortgage rates, is that they are only released once every day. Keep a constant eye on mortgage rates and stay in contact with your prospective lender, because rates can change dramatically throughout the day. Make sure to do your research and consider shopping around at several lenders.

• Another reason to shop around is that not all lenders charge the same amount of money for their services, a fact that is commonly mistaken. If a lender is looking to make a deal, it’s a possibility that they might waive most of the initial fees for you. Conversely, if a lender is getting a lot of business and can afford to, they might charge you more for their services than other lenders.

• Getting pre-approved for a loan is an essential step of the home buying process. However, just because you get pre-approved for your mortgage with one lender doesn’t mean you can’t get a mortgage through another. A pre-approval is meant to simply give you a ballpark estimate of what a lender would loan you for your Dallas home—it creates no obligation to get the mortgage from that lender.

For more information on mortgages or the pre-approval process for your Dallas home, please don’t hesitate to contact us at your convenience.

Bank of America Handing Over $500 Million Settlement to Mortgage Investors

Bank of America seems to be in hot water again. The bank announced recently that it would be paying out a $500 million settlement to investors that put money into mortgage-backed investments back in 2008.

The investors stated they were misled about $350 billion worth of mortgage-backed investments, and they took their claim to the bank’s front door. The bank representatives said they are happy about the settlement because it will resolve most of their claims and issues. However, Bank of America is still waiting for court approval of a settlement made two years ago with Bank of New Mellon Corp. If the claim isn’t resolved soon, it could mean more money out of Bank of America’s pocket to put it behind them.

Bank of America was a commonly talked about subject in the mortgage field because of their decision to buy Countrywide a while back. Countrywide was known as a lender of exotic mortgages and many of the loans were defaulted on, dealing a significant blow to the company. A slew of lawsuits and quarterly losses are at the forefront of Bank of America executives’ minds, as well as those of professionals throughout the banking industry. In early January, Bank of America had to pay out $2.7 billion to settle a dispute with Fannie Mae. The bank was forced to buy back a large number of mortgages that they sold to the agency. Another recent settlement from Bank of America was the one it had to pay to dispute the allegations that Bank of America, as well as other banks, had wrongfully foreclosed on several owners. The company paid $1.1 billion to dispute this claim, which took a toll on their quarterly earnings.

For more mortgage news in the Dallas, Texas area, please don’t hesitate to get in touch with us. We’re a team of experienced mortgage professionals serving a wide range of clients in the Dallas area, and we’d be happy to assist you.

Dallas Home Prices and Mortgage Rates on the Rise

Dallas, Texas home prices are on the rise as the market transitions from a home buyer’s market into a home seller’s market.  With droves of new buyers and move up buyers looking for homes in the area, the market is showing serious signs of a lack of inventory.  All the while, home loan rates have moved up to their highest levels in over a year.  Is time running out to buy a home at record low home prices and interest rates?

Dallas home prices have risen just over 7% in the last year, according to the S&P Dow Jones Indices, and are projected to keep rising.  Some particular Dallas areas like Lakewood, Canyon Creek, Prestonwood, and University Park have seen close to double digit growth in the first quarter of 2013 alone.  Home prices aren’t the only thing on the rise though, since mid-April, home loan rates for an average 30-year mortgage have increased from around 3.3% to 4%, just in the last 45 days.  Although mortgage rates are driven by many factors and market conditions, mortgage rates are expected to continue going up with more positive economic data and more money flowing into Stocks.

The economy as a whole has had a rough past few years, but has recently been showing serious signs of growth and improvement.  This kind of positive economic outlook, combined with a growing real estate market, continue to paint a bright future of the U.S. economy and housing market, particularly in Dallas and surrounding markets.  Job growth from local companies as well as many large corporations relocating their company offices and headquarters, have continued to flow into the Dallas area.  The continued population and job growth in the area is ultimately causing housing prices to continue increasing as any new supply is taken away by the new buyers in the area.

With home loan rates and home prices on the rise, now may be the time you’ve been waiting for to sell your home and buy another.  For many other who are deciding to stay in their home, this may be their last chance to refinance before interest rates go back up to 5% or higher.  Regardless of the path for your real estate future, consider the Cost of Waiting to Buy.

If you would like to find out more information about homes in the Dallas, Texas area, as well as the surrounding suburbs like Richardson, Prestonwood, Lakewood, University Park and Highland Park, please don’t hesitate to call us directly at 972-499-0454.  We’ve helped thousands of Dallas-area homeowners and home buyers navigate their home purchase or refinance and we’d love to assist you.  Contact us today!

Dallas Mortgage Rates and Home Prices Continue to Tick Higher

Should I stay or should I go now?  For the second straight month, mortgage rates have increased nationwide.  The rise in rates is due in part to reports of economic growth and job creation.  When there are more jobs being created and more spending coming into the economy, long-term interest rates on mortgages tend to go up.  While the average home loan rate declined throughout the month of April, May has brought a climbing stock market and climbing interest rates.  Many prospective buyers are sitting on the fence deciding if now is the time to move or stay.

But not only the interest rates are moving higher in Dallas.  Home prices in the area continue to climb at a record pace with inventory levels still extremely low compared to the amount of buyers in the market.  The low supply and inventory is only driving prices higher as we move into the busy summer months ahead.

As mortgage planners and loan officers, there’s no way to control the market and the direction that rates are heading in the future, but we can prepare you for what may be coming. To see a visual comparison of how rising rates can impact your home purchase price and/or payment, check out the Cost of Waiting Analysis so you can be familiar with the impact of rising interest rates.

Feel free to contact us with any questions you may have regarding mortgage rates and advice on how to best prepare for fluctuation in interest rates—we follow mortgage rates throughout each and every to do help you get the best rate on your mortgage.

If you have any questions or comments regarding mortgage rates in the Dallas, Texas area, as well as Plano, University Park and Highland Park, please do not hesitate to contact us at your convenience.  We’d be happy to talk about how we can create a tailor-made mortgage based on your unique situation.

Dallas Boasts Growing Home Equity for Owners

Data analysis company CoreLogic, Inc. recently published a report stating that Dallas area homeowners can now boast one of the best increases in home owner’s equity in the nation, according to Dallasnews.com.  The report found that that Dallas area homeowners came in third place as homeowners with positive equity rates on their mortgages.  With the real estate market taking a turn for the better, home equity rates across the country have seen a positive trend for homeowners.  President and CEO of CoreLogic, Anand Nallathambi, stated in the company’s report that, “The scourge of negative equity continues to recede across the country.”

Analysts at CoreLogic project that an additional 200,000 U.S. homes across the nation will be able to boast a positive home equity rate.  Figures for the fourth quarter of 2012 are estimated to contain these positive home equity rate figures.  Nallathambi said, “The trend toward more homeowners moving back into positive equity territory should continue in 2013.  There is certainly more to do, but with fewer borrowers underwater, the fundamentals underpinning the housing market will continue to strengthen.”

Though positive now, home equity rates in the Texas area were not always at their best.  In the worst of the housing market around 2008, over 21 percent of Dallas area homeowners were negative in their home equity rate, according to dallasnews.com.  Figures now show that the negative equity rate in the Dallas area has decreased a total of approximately 10.4 percent.  Additionally, property prices had also increased this past year to the tune of about 8 percent in the Dallas area, indicating a strong real estate market.

If you would like to further discuss how the growing equity in your Dallas home can be used to your advantage, please contact us.  We would love to discuss the mortgage options that are available to help you reach your goals.