By Dennis Norman, on October 7th, 2009 Dennis Norman
By: Dennis Norman
The Mortgage Bankers Association (MBA) released its weekly mortgage applications survey for the week ending October 2, 2009. The report showed an increase of 16.4 percent in mortgage loan applications from the week before fueled by interest rates remaing below 5 percent.
Unfortunately interest rates seem to be doing more for existing homeowners and the mortgage industry than investors and the real estate market at refi’s for the week made up 66.3 percent of the mortgage loan application activity. Over the past four weeks shows homeowners refinancing existing loans is up 6.7 percent Continue Reading →
By Dennis Norman, on October 7th, 2009 To alleviate some suffering by homeowners, the Obama Administration introduced the “Making Homes Affordable” plan last March. Unfortunately, the plan has not yet had the intended effect.
Article by the Grand Law Firm
Economists debate whether or not the country is actually currently in a recession. Some say that there are positive signs that we have reached the bottom and the economy is turning around. Others, however, suggest that the country still has a long way to go and it may be years yet before we truly reach financial recovery. Regardless of who is right though, one thing is clear: Continue Reading →
By Dennis Norman, on September 28th, 2009 Dennis Norman
By: Dennis Norman
I came across an interesting chart that I want to share. The chart below, courtesy of Chart of the Day, shows median home prices in the U.S. since 1970 (adjusted for inflation). As you can see from the chart, home prices trended upward from 1970 until peaking in the late 70’s (right around 1979 when I got into real estate, great timing on my part!) and then began dropping until the mid 80’s when prices began a rather rocky and unsteady climb upward.
As the chart illustrates, median home prices really started increasing, and Continue Reading →
By Dennis Norman, on September 23rd, 2009 Dennis Norman
By: Dennis Norman
The Mortgage Bankers Association (MBA) released its weekly mortgage applications survey for the week ending September 18, 2009. The report showed an increase of 12.8 percent in mortgage loan applications from the week before fueled by interest rates dropping below 5 percent for the first time since mid-May.
The bulk of the activity (63.8 percent of all applications) were homeowners refinancing their existing mortgages. Over the past four weeks shows homeowners refinancing existing loans is up 6.8 percent while borrowers financing the purchase of a home is only up 0.7 percent.
Interest rates Continue Reading →
By Dennis Norman, on September 22nd, 2009 Dennis Norman
By: Dennis Norman
Today the Federal Housing Finance Agency (FHFA) reported that U.S. home prices rose 0.3 percent on a seasonally-adjusted basis from June to July and are down 4.2 percent for the past year. Missouri is included by the FHFA in the West North Central division which was right on target with the US with an increase of 0.3 percent from June to July. Our region was only down 1.5 percent from last year according the report.
Many of the reports I’ve seen in the press on this are saying this is a sign of the Continue Reading →
By Dennis Norman, on September 18th, 2009 Dennis Norman
According to Freddie Macs weekly mortgage market survey the interest rate on home mortgages dropped for the third-consecutive week and remains at a three-month low in the US.
St. Louis is included in Freddie Mac’s Southwest Region in which the survey shows the interest rate on a 30 year fixed rate mortgage for the week ending September 17, 2009, averaged 5.05 percent with 0.6 percent in fees and points.
The interest rate on a 15-year fixed rate mortgage averaged 4.54 percent with 0.5 percent in fees this week. The interest rate on a five-year ARM averaged Continue Reading →
By Dennis Norman, on September 16th, 2009 Dennis Norman
According to a study conducted by First American CoreLogicentitled “How the U.S. Consumer Has Benefited from Mortgage Finance Programs in 2009”, projections are there will be $2.3 billion in mortgages refinanced as a result of the Fed’s “Making Home Affordable” plan. According to the study, the median individual monthly savings was $120.
“ The quantitative easing policies of the Federal Reserve and refinance activity made possible by the Home Affordable Refinance Program (HARP) have allowed more than 2 million consumers to reduce their monthly mortgage debt obligations and put more money in their pockets,” said Mark Fleming Continue Reading →
By Dennis Norman, on September 14th, 2009 Dennis Norman
Included in the “Making Home Affordable” program from the Obama administration is the “Home Affordable Modification Plan” (HAMP) designed to help 3 to 4 million home owners by modifying their existing loans to help them be more affordable. Last week, Michael S. Barr, the Assistant Secretary for Financial Institutions, testified before a congressional sub-committee on the status of these programs. In his testimony Mr. Barr said that weakness in the US housing market developed over many years and that during this period “inadequate regulation of lending and securitization practices, including lax underwriting standards, helped cause widespread over-leveraging Continue Reading →
By Dennis Norman, on September 10th, 2009 Dennis Norman
By: Dennis Norman
Anyone that follows any of my posts on various real estate blogs may well be getting tired of hearing me talk about foreclosure and mortgage delinquency rates. This is no doubt especially true when I am doing it in the context of trying to “chill” the excitement over recent “good” news on the housing market. However, there is good reason for this; these two issues are real problems, including right here in St. Louis, and they are not going away anytime soon.
This was evidenced in a report released today by First American Continue Reading →
By Dennis Norman, on September 9th, 2009 Dennis Norman
By: Dennis Norman
The Mortgage Bankers Association (MBA) released its weekly mortgage applications survey for the week ending September 4, 2009. The report showed an increase of 17.0 percent in borrowers applying for home mortgages to buy a home from the week before. This marks the largest gain in the index since early April, putting the index at the highest level since the first week of January.
There was a massive increase of over 22 percent from the week before for borrowers refinancing their existing home mortgage making . This the biggest jump in the increase Continue Reading →
By Dennis Norman, on September 5th, 2009 Dennis Norman
By: Dennis Norman
Over the past two days I published the first part and second part of my E-View TMwith Wendy Cromer, Vice-President of Marketing for Security Title Insurance Agency, LLC about title insurance, the new laws affecting it and things consumers should know.
Wendy Cromer, Vice-President of Marketing, Security Title Insurance Agency LLC
Today were going to do the final part of our E-View TM with Wendy:
Dennis-Wendy, title insurance seems to be one of those things that is a mystery to most homeowners. Can you please explain what title insurance is and Continue Reading →
By Dennis Norman, on September 4th, 2009 Dennis Norman
By: Dennis Norman
Yesterday I published the first part of my E-View TM with Wendy Cromer, Vice-President of Marketing for Security Title Insurance Agency, LLC about title insurance, the new laws affecting it and things consumers should know.
Wendy Cromer, Vice-President of Marketing, Security Title Insurance Agency LLC
Today we’ll pick up where we left off yesterday in our E-View TM:
Dennis-Wendy, here in St. Louis we have “split-closings” which I think are viewed by many in the title insurance industry as a bad thing, and in fact the new laws we discussed yesterday Continue Reading →
By Dennis Norman, on September 1st, 2009 Lawrence Yun, Chief Economist, NAR
By: Dennis Norman
Today the National Association of REALTORS(R) issued their Pending Home Sales Index Report for July showing pending sales in the U.S. were up for the sixth consecutive month, the best streak since NAR began the pending home sale index in 2001.
Here in the Midwest pending home sales for July were not as strong showing a 2.0 percent drop from June, however still 8.1% above a year ago. The only other region that saw a decline in month to month pending home sales in July was the Northeast with a Continue Reading →
By Dennis Norman, on August 28th, 2009
Charles Hugh Smith, Of Two Minds
By: Charles Hugh Smith:
In February 2007 I suggested a 4% mortgage delinquency rate could trigger a decline in the entire housing market. Since that proved prescient, we should revisit the analytic tool behind that call: the Pareto Principle.
There is a whiff of euphoria in the housing market, a heavily touted confidence that “the bottom is in.” It’s all roaring back–rising sales, multiple bids by anxious buyers, 3.5% down payments, low mortgage rates and the bonus of an $8,000 first-time home buyer credit (a gift from U.S. taxpayers). Continue Reading →
By Dennis Norman, on August 27th, 2009 Dennis Norman
By: Dennis Norman
The Mortgage Bankers Association (MBA) released its weekly mortgage applications survey for the week ending August 21, 2009. The report showed an increase in borrowers applying for home mortgages of about 1 percent from the week before for borrowers buying homes and an increase of almost 13 percent from the week before for borrowers refinancing their existing home mortgage.
Interest rates inched up a little last week according to the survey.
The average interest rate for 30 year fixed rate mortgages increased to 5.24 percent from 5.15 percent with loan fees increasing Continue Reading →
By Dennis Norman, on August 20th, 2009 Dennis Norman
According to Freddie Macs weekly mortgage market survey the interest rate on home mortgages dropped to a new three-month low. The survey shows the interest rate on a 30 year fixed rate mortgage averaging 5.12 percent with 0.7 percent in fees and points this week, down from 5.29 percent last week. Last year at this time, the 30 year interest rate averaged 6.47 percent.
The interest rate on a 15-year fixed rate mortgage averaged 4.56 percent with 0.7 percent in fees this week, down from 4.68 percent last week. Last year at this time the 15 Continue Reading →
By Dennis Norman, on August 15th, 2009 Freddie Mac announced that in the second quarter of 2009, refinancing borrowers overwhelmingly chose fixed-rate loans, regardless of whether their original loan was an adjustable-rate mortgage (ARM) or fixed. In fact, ninety-nine percent of prime borrowers who originally had a conforming ARM selected a new conforming fixed-rate mortgage when they refinanced.
While 30-year fixed-rate mortgages still tend to be the preferred loan, more borrowers are choosing 15-year fixed-rate loans than before. “When interest rates hit very low levels for fixed-rate mortgages, borrowers often take tis opportunity to lower their interest rate and shorten their loan term,” said Frank Nothaft, vice Continue Reading →
By Dennis Norman, on August 8th, 2009 Dennis Norman
By: Dennis Norman
Previously I did an article on avoiding foreclosure rescue scams which have unfortunately become rather common in recent months.
This week the FBI arrested two people that the FBI alleges has done just that. I wanted to share the press release from the FBI to heighten people’s awareness of scams such as this and hopefully help prevent more victims of such scams. The press release describes in detail how they allege this scam was carried out. To read the FBI press release click here, or just read below as I have published it Continue Reading →
By Dennis Norman, on August 6th, 2009 Dennis Norman
According to Freddie Macs weekly mortgage market survey mortgage rates decreased slightly for the week ending August 6, 2009 from the prior week. The survey shows 30 year fixed rate mortgages averaging 5.22% with 0.6% in fees and points, down from 5.25% the week before. Last year at this time, the 30 year rate averaged 6.52%.
Rates on 15 year fixed-rate mortgages decreased slightly as well, down to 4.63% from 4.69% the week before, 5/1 ARM’s held about the same at 4.73% and 1 year ARM’s as well as 4.78%. This time last year these arms Continue Reading →
By Dennis Norman, on August 4th, 2009 Lawrence Yun, Chief Economist, NAR
By: Dennis Norman
Today the National Association of REALTORS(R) issued their Pending Home Sales Index Report for June showing pending sales in the U.S. were up for the fifth consecutive month, the first time in six-years for such a streak.
Here in the Midwest pending home sales were only up 0.8% from May, but were up a whopping 11.6% from this time a year ago, the largest year over year increase of the four regions in the U.S.
The pending home sales index for the Midwest rose 0.8% to 89.9 from a level Continue Reading →
By Dennis Norman, on August 3rd, 2009 Dennis Norman
Late last week the Federal Reserve Board proposed significant changes to Regulation Z (Truth in Lending) intended to improve the disclosures consumers receive in connection with home mortgages and home equity lines of credit.
These changes are just proposed at this point and are being offered for public comment for 120 days at which time the Fed Reserve will review comments and decide whether or not to put the changes into effect.
Ben S. Bernanke
“Consumers need the proper tools to determine whether a particular mortgage loan is appropriate for their circumstances,” said Federal Continue Reading →
By Dennis Norman, on August 1st, 2009
Dennis Norman
By: Dennis Norman
Buying a home should be a dream come true not a nightmare of worry and stress. A new Federal Reserve Board publication, “5 Tips for Shopping for a Mortgage,” will help consumers avoid potential pitfalls and make well-informed decisions when choosing a home loan. Financing the purchase of a home is one of the most complex financial decisions that consumers make. The Federal Reserve’s latest “5 tips” guide is designed to help home buyers find the mortgage that is best for them. The complete guide is available here however a summary of Continue Reading →
By Dennis Norman, on July 31st, 2009 Dennis Norman
By: Dennis Norman
Today we pick up where we left off yesterday with my E-View TM with respected mortgage banker, H. John Frank, President of Paramount Mortgage Co. here in St. Louis.
If you missed part one, two, or three, there are links to both at the end of this post. And now, the final part of the E-View TM:
Q-This is a good time probably to address the Internet. There appear to be hundreds of lenders on the Internet for the consumer to choose from in addition to their local lenders. Do you think there Continue Reading →
By Dennis Norman, on July 30th, 2009 Dennis Norman
By: Dennis Norman
Today we pick up where we left off yesterday with my E-View TM with respected mortgage banker, H. John Frank, President of Paramount Mortgage Co. here in St. Louis.
If you missed part one or two, there are links to both at the end of this post. And now, part three of the E-View TM:
Q-I have seen a lot of reports about “jumbo” loans and rates being artificially high on those loans. What is a “jumbo” loan and have the rates been affected in a negative way as a result of the Continue Reading →
By Dennis Norman, on July 29th, 2009
H. John Frank, Jr., President, Paramount Mortgage Co.
By: Dennis Norman
Yesterday I did the first post of my E-View TM with respected mortgage banker, H. John Frank, President of Paramount Mortgage Co. located here in St. Louis.
Today we continue with part two of the E-View TM:
Q-How many states require mortgage brokers/bankers to be licensed? Does licensing protect the consumer in your opinion? If so, how? If not, why not?
A-I don’t know how many states require licenses, but later this year (I believe around the 1st of August) most, if not all, states Continue Reading →
By Dennis Norman, on July 28th, 2009 Dennis Norman
By: Dennis Norman
It seems home mortgages are in the news daily lately: record-low interest rates, record-high foreclosure rates, the sub-prime mortgage mess, lack of jumbo loans and so on. It’s confusing at best and causing much concern for many people wishing to buy a home or refinance their existing home mortgage.
H. John Frank, Jr., President Paramount Mortgage Co.
To find out just what is going on in the home mortgage world today I turned to someone I have known for over 20 years that is a highly respected St. Louis mortgage banker, Continue Reading →
By Dennis Norman, on July 24th, 2009 Dennis Norman
According to Freddie Macs weekly mortgage market survey mortgage rates increased slightly this week from the prior week. The survey shows 30 year fixed rate mortgages averaging 5.20% with 0.7% in fees and points, up from 5.14% the week before. Last year at this time, the 30 year rate averaged 6.63%.
Rates on 15 year fixed-rate mortgages increased slightly as well, up to 4.68% from 4.63% the week before, 5/1 ARM’s held about the same at 4.74% and 1 year ARM’s as well as 4.76%. This time last year these arms were 6.18% and 5.49% respectively.
Continue Reading →
By Dennis Norman, on July 18th, 2009 Dennis Norman
By: Dennis Norman
Freddie Macs weekly mortgage market survey mortgage rates dropped this past week, making it the third week in a row rates came down.
The survey shows 30 year fixed rate mortgages averaging 5.14% with 0.7% in fees and points, down from 5.20% the week before. This is the lowest rate reported in Freddie Mac’s survey for a 30 year fixed rate loan since May. Rates on 15 year fixed-rate mortgages dropped very slightly as well, down to 4.63% from 4.69% the week before, 5/1 ARM’s held about the same at 4.83% and Continue Reading →
By Dennis Norman, on July 16th, 2009 By: Dennis Norman
Recently the The Office of the Comptroller of the Currency issued a Consumer Advisory. The Advisory contains consumer tips for avoiding mortgage modification scams and foreclosure rescue scams.
The advisory states; “Scams that promise to “rescue” you from foreclosure are popping up at an alarming rate nationwide, and you need to protect yourself and your home. If you’re falling behind on your mortgage, others may know it too – including con artists and scam artists. They know that people in this situations are vulnerable and often desperate.”
The OCC suggests that before you do business with someone Continue Reading →
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