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30-Year Mortgages Edge Down Slightly

Freddie Mac Chief Economist Frank Nothaft says the housing slump, along with rising mortgage delinquencies and foreclosures, has taken a toll on homeownership rates and prevented significant movement in mortgage rates during the week ended May 8.

The 30-year fixed rate slipped to 6.05 percent from 6.06 percent a week ago, while the 15-year fixed rate bumped up to 5.60 percent from 5.59 percent. Over the same period, the five-year adjustable mortgage rate fell to 5.67 percent from 5.73 percent; and the one-year ARM held steady at 5.29 percent.

Nothaft cites a report from the U.S. Census Bureau that indicates a decline in the national homeownership rate to 67.8 percent in the 2008 first quarter from 69 percent in the 2006 third quarter.

FHA Raises Mortgage Limits in High-Cost California Counties

By SARA MURRAY
March 5, 2008 6:38 p.m.The Federal Housing Administration raised the mortgage limits to a maximum of $729,750 for 14 high-cost counties in California, as the government began providing aid to homeowners required by the recently enacted economic-stimulus package.The upper mortgage limits also will apply to loans purchased or guaranteed by government-sponsored mortgage companies Fannie Mae and Freddie Mac, FHA officials said.Details for the rest of the country are due to be announced this week. California counties such as Los Angeles and Orange will be eligible for the maximum limit, which was raised from $362,790. Lower- priced regions, such as Trinity and Lassen counties, will qualify for a loan cap of $271,050, up from $200,160.FHA officials predicted the increases in California would aid about 33,000 individuals. The new loan limits will be in effect through the end of this year. The goal is to invigorate the market for larger mortgages, which should help push down interest rates.The FHA said there would be an appeal process through which the new loan limits could be raised higher for counties that aren't now eligible for the $729,750 maximum, but none of the limits will be lowered, said Bill Glavin, special assistant for public affairs in the FHA's Commissioner's Office. That appeals process could be announced, along with new loan limits for the rest of the country, as early as Thursday."From what we understand there are not going to be a lot of areas in the country except for California that are going to be at the maximum," Mr. Glavin said.

Those who have applied for an FHA loan but haven't yet closed on it will be able to take advantage of the new limits. The new ceilings also will apply to people seeking to refinance into an FHA loan

February 21, 2008 - Sandy Edelstein _ First Capital Corporation

Here is the latest information we have on the status of the new conforming loan limits:

As you know, the President signed the Economic Stimulus Bill into law on Wednesday February 13.  Although details of the affected agencies' requirements, eligible products, pricing and availability are still not finalized, we are working to identify the impact of the new law and the changes that will occur and get that information out to you as it becomes available.

HUD has 30 days from the date the bill was signed into law to establish and publish the median area home prices, MSA's (Metropolitan Statistical Areas) and the new loan limits for each area.  So we should have this information by around the middle of March.

However, we have been advised that the new conforming loan limits will not go into effect until July 1, 2008 and will be good only until December 31, 2008--unless of course, the law is extended.

So for now, the conforming loan limits remain at $417,000 for a single unit property (higher limits apply for 2, 3 and 4 unit properties).

At the moment, the bond and stock markets continue to be very volatile.  As you will see from the attached rate sheet, mortgage rates have continued to edge up a bit, though the bond market is having it's first good day in several weeks today, so with any luck, this is the beginning of a trend!

 

The weekly Mortgage Market Guide - January 3, 2008

Senate Passes FHA Loan Limit Increase!

Big Win for California REALTORS®! 

On Friday, December 14, 2007, the U.S. Senate voted 93 to 1 to pass S. 2338, the FHA Modernization Act, which will reform the Federal Housing Administration (FHA).  A conference committee will now meet to resolve differences between this bill and the one passed by the House of Representatives earlier this year.

This is a huge victory for REALTORS® who have lobbied Congress aggressively all year to pass FHA reform and provide troubled homeowners with safe and affordable refinancing options.  Senator Diane Feinstein supported the measure and though Senator Barbara Boxer was not present to vote on the bill, she did issue a statement supporting it.

While the issue of FHA reform enjoys broad bipartisan support, including the administration, there are still a number of details to be worked out between the Senate FHA reform bill and the House passed version.  Additionally, legislation to reform Government Sponsored Entities (GSEs) Fannie Mae and Freddie Mac has not yet been introduced in the Senate.

C.A.R. will keep you informed on any future developments concerning these two very important issues. Thank you to every REALTOR® who participated in C.A.R.'s and NAR's Calls-for-Action on this bill and the issue of GSE by contacting Senators Feinstein and Boxer.