WASHINGTON, Feb. 22 (UPI) — The Mortgage Bankers Association said U.S. mortgage activity fell 4.5 percent in the week ending Friday, as long-term interest rates rose.

Interest rates for 30-year, fixed-rate conforming mortgages rose from 4.08 percent to 4.09 percent with average points rising from 0.51 to 0.53.

Rates for 15-year, fixed-rate contracts also rose, climbing from 3.33 percent to 3.38 percent. Points for 15-year loans fell from 0.4 to 0.37.

Along with the MBA’s Mortgage Index, the Refinancing Index also decreased, dropping 4.8 percent compared to the previous week.

Mortgage rates are the lowest on record. But by a key historical measure, they should be even lower.

Over the past year, a wide gap ripped open between the mortgage rates house hunters see and a benchmark interest rate investors demand to buy bonds backed by home loans.

In normal times, this obscure metric would only be of interest to bankers, brokers and traders of mortgage-backed securities. But with housing still dragging on the economy, the spread is potentially slowing the recovery—and important to everyone from top Washington policy makers to strapped homeowners who could use a few extra dollars each month.

[More from WSJ.com: Buying After a Short Sale]

For months, a key interest rate on mortgage-backed securities—known as the current coupon yield—has tumbled faster than average U.S. 30-year mortgage rates.

In recent weeks, the difference between the two has flirted with levels seen in the aftermath of the financial crisis.

Some say the wide spread shows the large banks that dominate the mortgage market are flexing their muscle by keeping prices relatively high. Others argue the gap reflects increased regulatory costs, risks and new realities of mortgage making.

Either way, the spread is wide. Tuesday afternoon, it was 0.96 percentage points—almost double its average over almost 30 years. It has been as high as 1.20 percentage points this year.

“To me what it tells us is that traditional monetary-policy measures to help get the housing market rolling again…are weaker than they normally would be,” said Columbia University’s Frederic Mishkin, a former Fed governor.

The effort by the Federal Reserve and others to boost housing depends on the mechanics of the banking system to pass along savings and benefits to consumers. The wide spread between the mortgage rates and mortgage-backed bonds suggests the gears of that mechanism are gummed up.

“This is not a rounding error, this is something to take note of,” said Susan Wachter, a professor of real estate and finance at the University of Pennsylvania’s Wharton School.

[More from WSJ.com: Some Wine With Your White Castle?]

To be sure, consumers are seeing the lowest rates in several generations already. The 30-year fixed mortgage rate averaged 3.87% for the week ended Thursday, down from 5% the previous year. That is the lowest in Freddie Mac’s survey data, which stretches back to 1971.

If history is any guide, it should be a lot lower. With yields on mortgage-backed securities at these levels, the 30-year fixed rate mortgages would be roughly 3.40% if the spread was around its historical average of 0.50 percentage points.

That rate would save a U.S. homeowner with the average outstanding loan balance of $155,000 about $41 in mortgage payments each month, versus the current rate.

Over the seven-year period someone usually holds a 30-year mortgage, that translates into a roughly $3,446 difference, according to numbers provided by trade publication Inside Mortgage Finance.

Wider spreads generally translate into better margins for banks and brokers. And some lenders have seen profitability on mortgage origination improve as the spread has widened.

[More from WSJ.com: For Women, Is Home Really So Sweet?]

Some mortgage-finance observers suggest that increased concentration among the large banks that dominate the mortgage market better helps explain the wide spreads. They argue that because there are fewer banks doing the bulk of the mortgage lending than in years past, it is easier for them to capture market share without offering rock-bottom prices.

“It’s a lack of competition. We really haven’t seen a competitive marketplace since 2008,” said Guy Cecala, publisher of Inside Mortgage Finance.

In 2011, the top five banks had a hand in 59% of the mortgage loans packaged into government-guaranteed mortgage-backed securities, up from 45% in 2004, according to Inside Mortgage Finance. Recently, major banks have cut down on their mortgage business sharply.

Bankers push back against any notion of oligopoly.

“The mortgage business is extraordinarily competitive,” said Franklin Codel, head of mortgage production at Wells Fargo Home Mortgage.

There are other factors at work. For one thing, fees charged to lenders by government-controlled mortgage-finance companies Fannie Mae and Freddie Mac are set to rise this year. The increases paid for the payroll-tax break passed by Congress in December.

[Also see: How Your Age Affects Your Car Insurance Rate]

Analysts stress it is difficult to disentangle how much of the spread is due to pricing power from banks with more control of the market, and how much might represent structurally higher costs of doing business in the U.S. mortgage market reshaped by the crisis.

Banks and mortgage lenders point out that costs of underwriting loans—conducting the detailed scrutiny of financial statements and employment background—has gotten more expensive and time consuming.

In part that reflects the experience of some banks, which have been forced by Fannie and Freddie to buy back loads of loans that soured, making them more cautious. Others say Fannie and Freddie have grown much tougher over the documentation they accept on loans.

SUNNYVALE, Calif., Feb. 22, 2012 /PRNewswire/ – Today, CreditSesame.com, the popular personal finance and credit education resource site, announced the launch of its interactive mortgage comparison and visualization tool designed to help consumers quickly and easily identify their best loan options visually.   

Comparing mortgage loans can be an overwhelming task. With multivariable options at play—such as mortgage types, rates, APRs, closing costs, points, fees and different amortization schedules—it is often difficult to answer simple questions—e.g., which loan could cost you the least, or which loan may save you the most money in refinance.  Credit Sesame’s Mortgage Value Map is a sophisticated tool that simplifies the complex task of comparing mortgage loan options and, for the first time, clearly displays how various loan options from top national mortgage providers compare and could impact your finances.

“If we had this map before the mortgage crisis, many people would have been able to make smarter decisions and evaluate the potential risk and rewards of their choices much more clearly,” said Credit Sesame founder and CEO, Adrian Nazari.

Whether looking to refinance or purchase a new home, the Credit Sesame interactive mortgage comparison map lets you instantly analyze today’s mortgage rates and visually compare top loan offers.  Users benefit from having access to custom rate quotes from top national lenders and visual analytics to evaluate which options may cost you the least, or save you the most money over the life of the loan.

Credit Sesame’s visual mortgage comparison tool lets you…

• Anonymously shop products, rates and fees brought to you by national lenders in real time
• Quickly analyze the multivariable options (mortgage type, rate, APR, monthly payment, closing costs and fees) that impact the total cost of your loan
• Rank and compare loans using your preferences and unbiased financial analysis
• Save time and money and stay in the know at a glance as the market changes

Credit Sesame’s patent-pending mortgage analytics was developed by Stanford University scientists and vetted by members of the top 10 banks.  The mortgage visualization tool is the latest innovation from Credit Sesame, whose mission is to make the complicated world of personal finance simple for consumers.  The company gives consumers free access to bank-level analytics to give them an edge on leveraging their credit and loans to make smarter decisions in their financial lives.

About Credit Sesame

Credit Sesame brings the power of bank analytics to you.  It is a personal finance tool that provides a free credit score and insightful information and analysis to  save money. With our powerful financial technology—comparable to what banks use to optimize profits on their lending products—you can see how lenders see you, understand how to improve your credit and know what options are truly available.  Once you sign up, Credit Sesame proactively monitors market changes and your financial picture to bring just in time alerts and recommendations that are important to you and maximize your savings.  You will always get free, unbiased, personalized recommendations so that you can get control of your finances, save money, borrow smarter and monitor your credit and debt online.

For more information visit www.creditsesame.com and stay connected by following us on Twitter (@creditsesame), liking us on Facebook (http://www.facebook.com/creditsesame), getting the latest expert tips from our personal finance blog (http://www.creditsesame.com/blog/) and staying with us on the go through our free mobile app (http://tiny.cc/credit_sesame_itunes)

HSH.com releases its latest Weekly Mortgage Rate Radar showing a retreat in mortgage rates from the previous week. The Weekly Mortgage Rate Radar reports the average rates and points offered by lenders for the two most popular types of mortgages, the conforming 30-year fixed-rate mortgage and the conforming 5/1 adjustable-rate mortgage (ARM). Average rates for both kinds were slightly lower during the week ending February 21.

Foster City, Calif. (PRWEB) February 22, 2012

Rates on the most popular types of mortgages eased slightly, according to HSH.com’s Weekly Mortgage Rate Radar. The average rate for conforming 30-year fixed-rate mortgages fell by 3 basis points (0.03 percent) to 4.00 percent. Conforming 5/1 hybrid ARM rates decreased by just 1 basis point, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.94 percent.

“Rates for the most popular types of mortgages were down slightly over the past five business days, but a warming economy and stronger stock market will push them higher as the week progresses,” said Keith Gumbinger, vice president of HSH.com.

Gumbinger noted that underlying interest rates which influence mortgages have been on the rise recently, a trend that will have at least some effect on mortgage rates before long.

“If the economy continues to show stronger signs, at least slightly higher rates are inevitable,” commented Gumbinger. “As we noted in our new Two-Month Forecast, in such an environment, we expect that mortgage rates won’t be regularly setting new record lows. However, to say that rates will remain favorable is an understatement.”

Average mortgage rates and points for conforming residential mortgages for the week ending February 21 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

•     Average rate: 4.00 percent
•     Average points: 0.30

Conforming 5/1-year adjustable-rate mortgage

•     Average rate: 2.94 percent
•     Average points: 0.24

Average mortgage rates and points for conforming residential mortgages for the previous week ending February 14 were, according to HSH.com:

Conforming 30-year fixed-rate mortgage

•     Average rate: 4.03 percent
•     Average points: 0.27

Conforming 5/1-year adjustable-rate mortgage

•     Average rate: 2.95 percent
•     Average points: 0.23

Methodology

The Weekly Mortgage Rate Radar reports the average rates and points offered on conforming 30-year fixed-rate mortgages and conforming 5/1 ARMs. The weekly mortgage rate survey covers a large sample of mortgage lenders and is conducted over a Wednesday-to-Tuesday cycle, with data released every Wednesday. HSH.com’s survey helps consumers find the best rates on home loans in changing market conditions. Unlike mortgage rate surveys that report average rates only, the Weekly Mortgage Rate Radar’s inclusion of both average rates and average points provides a more accurate view of mortgage terms currently offered by lenders.

Every week, HSH.com conducts a survey of mortgage rate data for a wide range of consumer mortgage products including ARMs, FHA-backed and jumbo mortgages, as well as home equity loans and lines of credit from hundreds of direct lenders in the U.S. For information on additional loan products, visit HSH.com.

About HSH.com

HSH.com is a trusted source of mortgage data, trends, news and analysis. Since 1979, HSH’s market research and commentary has helped homeowners, buyers and sellers make smart financial choices and save money on mortgage and home equity products. HSH.com, of Pompton Plains, N.J., is owned and operated by QuinStreet, Inc. (NASDAQ: QNST), one of the largest Internet marketing and media companies in the world. QuinStreet is committed to providing consumers and businesses with the information they need to research, find and select the products, services and brands that meet their needs. The company is a leader in visitor-friendly marketing practices. For more information, please visit QuinStreet.com.

Press Contact

Andrew Heilman

775-784-3842

pr(at)hsh(dot)com

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Andrew Heilman
HSH.com
775-784-3842
Email Information

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SEATTLE, Feb. 21, 2012 (GLOBE NEWSWIRE) — The 30-year fixed mortgage rate on Zillow(R) Mortgage Marketplace is currently3.76 percent, up six basis points from 3.7 percent at this same time last week. The 30-year fixed mortgage rate hovered between 3.67 and 3.76 percent for the majority of the week, peaking at 3.79 percent on Friday before falling to the current rate this morning.

“Rates drifted slightly up this past week, on expectations of progress in Greece’s bailout negotiations and improving U.S. economic news,” said Erin Lantz, director of Zillow Mortgage Marketplace. “With a shortened and relatively slow week for U.S. economic data, we expect rates to remain fairly steady.”

Zillow‘s real-time mortgage rates are based on thousands of custom mortgage quotes submitted daily to anonymous borrowers on the Zillow Mortgage Marketplace site, and reflect the most recent changes in the market. These are not marketing rates, or a weekly survey.

The rate for a 15-year fixed home loan is currently 3.0 percent, while the rate for a 5/1 adjustable-rate mortgage (ARM) is 2.75 percent.

Below are current rates for 30-year fixed mortgages by state. Additional states’ rates are available at: http://www.zillow.com/mortgage-rates.

About Zillow Mortgage Marketplace

Zillow Mortgage Marketplace, operated by Zillow, Inc., is a free, open, and transparent lending marketplace, where borrowers connect with lenders to find loans and get the best mortgage rates. Borrowers anonymously submit loan requests and receive an unlimited number of custom mortgage quotes with real rates directly from thousands of competing lenders. Zillow Mortgage Marketplace also provides mortgage calculators, mortgage advice, mortgage widgets, and lender directories.

The Zillow logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=10012

Zillow is a registered trademark of Zillow, Inc.

ForTheBestRate.com reports that 30 year and 15 year fixed home loan pricing is holding steady at all time historic low.

Wilmington, NC (PRWEB) February 21, 2012

30 year fixed mortgage rates are unchanged since setting a new record low the first week of February, according to mortgage rate research website, ForTheBestRate.com. Holding steady at an average of 3.87% (0.8 points) 30 year home loans are as inexpensive as they have ever been since records have been kept. 15 year fixed rate pricing averaged 3.16% (0.8 points) this week, up only slightly from the record low of 3.14% (0.8 points.)

Mortgage borrowers with excellent credit and desirable (less risky) loan scenarios may be able to find mortgage rates even lower than the current averages. On Friday, February 17 30 year fixed rates as low as 3.500% (APR: 3.641%, Points: 1.25, Fees: $950, Lender: United Pacific Mortgage) were posted in the rate tables on the website. For the 15 year fixed product pricing was advertised as low as 2.750% (APR: 2.886%, Points: 0, Fees: $1899, Lender: Absolute Mortgage.)

“This is an excellent time for the highest credit worthy applicants to lock in an incredibly low rate. A fixed rate mortgage at 2.75% would have been unimaginable for much of the history of mortgage lending,” commented Nat Criss, Managing Partner of CMG Equities, LLC, which runs ForTheBestRate.com. “Even for those with some credit issues or less equity in their properties, pricing can still be very very low, and represent significant savings over loans taken out just a few years ago,” he added.

The risk level of a loan is determined based on factors such as the credit score and history of the applicant, the percentage of the property’s value that the loan makes up, and the potential borrowers’ income, assets, and other debts.

Current mortgage rates for a number of different residential mortgage programs can be viewed on ForTheBestRate.com. Below is a snapshot of mortgage rates for a variety of home financing products listed on the site on 02/17/2012. Rates are subject to change. Please visit the site to view the criteria used in the survey.

30 Year Mortgage Rates (0 Points)

Absolute Mortgage – 3.625% Note Rate, 3.703% APR, $1899 Fees in APR

Emery Federal Credit Union – 3.750% Note Rate, 3.750% APR, $0 Fees in APR

15 Year Mortgage Rates (0 Points)

AmeriSave – 3.000% Note Rate, 3.144% APR, $1995 Fees in APR

Emery Federal Credit Union – 3.125% Note Rate, 3.125% APR, $0 Fees in APR

30 Year FHA Mortgage Rates (0 Points)

Loan Depot – 3.750% Note Rate, 3.750% APR, $0 Fees in APR

First Choice Bank – 3.750% Note Rate, 3.793% APR, $1050 Fees in APR

30 Year VA Mortgage Rates (0 Points)

Emery Federal Credit Union – 3.750% Note Rate, 3.750% APR, $0 Fees in APR

About ForTheBestRate.com

ForTheBestRate.com is a website that offers information regarding mortgages, insurance, and personal finance. ForTheBestRate.com is owned by CMG Equities, LLC based in Wilmington, North Carolina.

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Anna Platz
CMG Equities, LLC
267-987-3024
Email Information