The refinance share of mortgage applications in the fourth quarter of 2005 was 45 percent while the average rates on 30-year fixed-rate mortgages climbed 0.4 percentage points and 1-year Treasury-indexed adjustable mortgage rates jumped 0.6 percentage points from third-quarter averages. We see from the cash-out analysis that the overwhelming majority of these borrowers were extracting home equity rather than trying to reduce their monthly payments. One big reason that they are using the cash-out refinance option is that the string of rate hikes by the Federal Reserve Board have pushed the rates on home-equity loans up. Home-equity loans are typically linked to the prime rate, which currently is at 7.5 percent. In contrast, the average rate on 30-year fixed-rate mortgages is presently near 6.25 percent.
More Quotes from Frank Nothaft:
With mortgage rates continuing to slip, a new wave of refinancing has appeared. According to the Mortgage Bankers Association of America, applications for refinance jumped 15 percent last week, near the record high set in March. And according to Freddie Mac's quarterly refinance review, the average age of a refinanced loan fell to 1.9 years in the first quarter of this year.Frank Nothaft
Currently the market is relatively stable while it looks to see if there are any remaining weak spots in the economy and, if so, what those spots might be. But, at the moment, there seems to be nothing that would indicate that anything that might seriously disrupt the market and cause mortgage rates to rise appreciably.
Frank Nothaft
Despite the gradual rise in mortgage rates over the last two months, housing starts were actually up in September highlighting the resiliency of the housing market. As a matter of fact, housing directly contributed to real GDP growth of 19 percent in the first quarter of the year and 23 percent in the second quarter.
Frank Nothaft
Stronger than expected gains in the manufacturing and service industries - coupled with higher labor costs - ignited inflation concerns, which led to the rise in mortgage rates this week.
Frank Nothaft
Additional economic indicators this week confirmed that June was a weak month for the nation as a whole. Consequently, the upward pressure on interest rates eased, allowing mortgage rates to return to earlier, lower levels.
Frank Nothaft
Financial markets are feeling more confident that the Fed will not raise rates any time soon. Add to that the fact that recent economic data shows core inflation is less than the market expects, and we see mortgage rates drop once again.
Frank Nothaft
Readers Who Like This Quotation Also Like:
Based on Topics: Home QuotesBased on Keywords: adjustable, averages, borrowers, cash-out, extracting, fixed-rate, home-equity, mortgages, refinance, third-quarter
I'm tired of being around men all the time. I'm going to start a band called Skirt with three girls and I'll play the guitar and sing backing vocals in drag. I went window shopping when I was in New York, saw a lot of amazing dresses.
Brian Molko
I'm competitive with myself. I always try to push past my own borders.
Tyra Banks
I think I've finally proven something to people who were cynical about me. Because they were cruel.
Nancy Sinatra