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Home-mortgage rates fell again this week, sending the rate on the 30-year fixed-rate mortgage down for a fifth straight week to its lowest level since February, Freddie Mac said.
The average rate on the 30-year fixed-rate mortgage is down about 0.75 percentage point since its decline began last month, said Frank Nothaft, Freddie Mac chief economist, in a news release.
The mortgage rate averaged 5.78% for the week ended Sept. 18, down from 5.93% last week and 6.34% a year ago. It hasn’t been lower since the week ended Feb. 14, when it averaged 5.72%. The loan hit its low for the year on Jan. 24, at 5.48%.
The 15-year fixed-rate mortgage averaged 5.35%, down from 5.54% last week and the year-ago 5.98%. Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 5.67%, down from 5.87% last week and the year-ago 6.21%. One-year Treasury-indexed ARMs averaged 5.03%, down from 5.21% and the year-earlier 5.65%.
As a result of the mortgage-rate decline, said Mr. Nothaft, mortgage applications surged nearly 58% since Aug. 15, largely led by a 122% gain in applications for refinancing, according to the Mortgage Bankers Association.
The government takeover of mortgage giants Fannie Mae and Freddie Mac has spurred a decline in mortgage rates that some analysts say could be long lasting.
Source: wsj.com
The National Association of Realtors® testified in Congress on the critical importance of reforming the Real Estate Settlement Procedures Act in a way that truly benefits home buyers by reducing costs, simplifying the closing process, and making closing cost disclosures more consistent and understandable.
NAR has expressed concern over the current U.S. Department of Housing and Urban Development proposal for RESPA reform, which falls short of its stated goal of simplifying the closing process. In addition, HUD’s proposed closing script not only lengthens an already long process but also will ultimately increase closing costs.
NAR and the Center for Responsible Lending have recommended that HUD develop a one-page summary GFE to help buyers comparison shop, accompanied by a full GFE that includes all closing costs to reduce confusion. NAR also supports improved disclosures of mortgage terms and settlement services.
“The new GFE, with its price guarantees, volume discounts and price tolerances, is designed to reduce costs, but its provisions will have the unintended consequences of reducing competition in the settlement services industry, favoring large lenders, and ultimately disadvantaging consumers,” said Lindsey.
Source: Realtor.org
