Refinance Mortgage Rates Still Holding Low as Home Prices Stabilize
Alas, some good news pertaining to the overall general economy and the world of home mortgage financing. Home prices posted their first quarterly increase in three years, signaling the housing market just possibly is turning the corner, while mortgage rates continue to hug the lower end of the spectrum.
The Standard & Poor's/Case-Shiller's U.S. National Home Price Index released Tuesday rose nearly 3 percent from the first quarter to 133. The monthly index of 20 major cities increased 1.4 percent from May to June to 142, the second straight month the index registered a gain, but still way too early to hold a celebration party.
Home prices still have a long way to go to recover completely. In reality, home prices have fallen 30 percent from the peak in the second quarter of 2006. That said, even a clear stabilization in home prices would be a victory in the near term. If continued positive housing numbers extend into the 3rd quarter, that will go a long way toward the easing of refinance and home purchase mortgage lender restrictions, along with a possible further decline to the mortgage spread premium.
Of course, there would be nothing better for the overall economy than to have a stabilized housing market. The financial healing will begin and the jobs picture will become a whole lot rosier.
Just like predicting where refinance mortgage rates will go from here, predictions of the housing market recovery are not worth much. Just like with weather predictions, most forecasters are fairly accurate in the short-term, but the long term forecasts usually fall apart.
Earlier this week, Fed chairman Ben Bernanke declared the global economy is beginning to emerge from its worst crisis in generations, the emphasis will be on whether central banks continue to work together to prevent a crisis like this from happening again or if each will take its own path to assure the path to recovery is smooth.
There has also been a revisiting of the packaged mortgage CDO investments by a number of banking institutions. Although no standard pricing model has been adopted, some banks appear to be packaging those underwater mortgage debts alongside its AAA rated mortgages and marketing them as they are, with no pretense. If this type of investment vehicle takes hold, the entire financial system could be purged of it’s toxic debts and really open the mortgage lending industry up full throttle. The idea sounds nice on paper, but don’t hold your breathe if this latest toxic debt effort falls on its face.
Mortgage rates are still holding at low levels. The treasury yield has been bouncing back and forth, but really seems to have been hugging that 3.5% mark since early July. That is good for mortgage rates and good for those still looking to refinance their home loan or debt consolidation.
If you are considering a refinance now and need some help, have questions, or need some competitive rate quotes, please check out the popular Refinance Tool Box. Just give a call at 888-850-9888 or fill out a Rate Quote Request online for professional assistance without the aggressive high-pressure sales tactics.
May the Mortgage Refinance Rates be with You!
Refinance Tool Box
The Standard & Poor's/Case-Shiller's U.S. National Home Price Index released Tuesday rose nearly 3 percent from the first quarter to 133. The monthly index of 20 major cities increased 1.4 percent from May to June to 142, the second straight month the index registered a gain, but still way too early to hold a celebration party.
Home prices still have a long way to go to recover completely. In reality, home prices have fallen 30 percent from the peak in the second quarter of 2006. That said, even a clear stabilization in home prices would be a victory in the near term. If continued positive housing numbers extend into the 3rd quarter, that will go a long way toward the easing of refinance and home purchase mortgage lender restrictions, along with a possible further decline to the mortgage spread premium.
Of course, there would be nothing better for the overall economy than to have a stabilized housing market. The financial healing will begin and the jobs picture will become a whole lot rosier.
Just like predicting where refinance mortgage rates will go from here, predictions of the housing market recovery are not worth much. Just like with weather predictions, most forecasters are fairly accurate in the short-term, but the long term forecasts usually fall apart.
Earlier this week, Fed chairman Ben Bernanke declared the global economy is beginning to emerge from its worst crisis in generations, the emphasis will be on whether central banks continue to work together to prevent a crisis like this from happening again or if each will take its own path to assure the path to recovery is smooth.
There has also been a revisiting of the packaged mortgage CDO investments by a number of banking institutions. Although no standard pricing model has been adopted, some banks appear to be packaging those underwater mortgage debts alongside its AAA rated mortgages and marketing them as they are, with no pretense. If this type of investment vehicle takes hold, the entire financial system could be purged of it’s toxic debts and really open the mortgage lending industry up full throttle. The idea sounds nice on paper, but don’t hold your breathe if this latest toxic debt effort falls on its face.
Mortgage rates are still holding at low levels. The treasury yield has been bouncing back and forth, but really seems to have been hugging that 3.5% mark since early July. That is good for mortgage rates and good for those still looking to refinance their home loan or debt consolidation.
If you are considering a refinance now and need some help, have questions, or need some competitive rate quotes, please check out the popular Refinance Tool Box. Just give a call at 888-850-9888 or fill out a Rate Quote Request online for professional assistance without the aggressive high-pressure sales tactics.
May the Mortgage Refinance Rates be with You!
Refinance Tool Box
Labels: business, economy, finance, home loans, money, mortgage rates, refinance, refinance rates, refinancing
posted by Jim Bisnett at
10:16 AM
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