Monthly Archives: February 2016

Regularly, Consumers Underestimate How Fast Home Prices Climb

news-img23 Fannie Mae Surveys 1,000 U.S. Consumers current mortgage rates low, millions of U.S. homeowners are potentially eligible to refinance.Few are actually doing it, however -- and a Fannie Mae survey may explain why. According to Fannie Mae's monthly National Housing Survey, nearly half of surveyed consumers think it would be "difficult" to get a mortgage approved. As a result, many decide never to apply. But, getting approved is not difficult at all. At least, not statistically. Since the start of 2014, U.S. lenders been loosening home loan guidelines so that, today, according to Ellie Mae, two-thirds of refinance mortgage applications get the go-ahead and more than 72% of purchase mortgage applications do. Both are all-time highs since such data has been tracked. With FHA loansavailable for borrowers with credit scores of 580 and higher; and with conventional loans requiring less paperwork, not since 2008...
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Fed Survey: Mortgage Lenders Rapidly Lowering Loan Approval Standards

news-img22 Senior Loan Officer Survey Shows Mortgage Standards Loosening It's an excellent time to be buying a home or refinancing one --current mortgage rates dropped and U.S. lenders are making it easier to get mortgage-approved. Between October-December 2015, for the seventh straight quarter, a greater number of mortgage lenders reduced their loan approval standards than those which increased them. It points to why more mortgage loans are being approved than during any period in recent history. Lenders have armed themselves with better lending models and feel buoyed by the rising U.S. housing market. As a result, banks are making new concessions for borrowers with less-than-perfect credit; and for those with little or no home equity. If you're worried about getting turned down for a mortgage, it can't hurt you to apply. You may be surprised at what you find out. Banks Issuing More Mortgage Approvals Once per quarter, the Federal...
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Consumers Keep Getting It Wrong About Mortgage Rates

news-img21 Consumers Think Mortgage Rates Will Rise U.S. consumers expect today's mortgage rates to rise over the next 12 months. According to Fannie Mae's most recent National Housing Survey, 57% of consumers think mortgage rates will be higher one year from today, and another 38 percent believe rates will remain near their current range. The survey, which covers 1,000 households, is meant to measure changing consumer attitudes toward mortgages and housing nationwide. Just 5% expect mortgage rates to drop. However, don't be swayed by popular opinion. Main Street's track record with respect to predicting the future of U.S. mortgage rates is terrible. (And, if it makes you feel better, Wall Street's predictions are just as wrong.) Since the start of the decade, mortgage rates have steadfastly defied consumer and analyst expectations. This year is no different. Since the start of 2016, 30-year mortgage rates have dropped close to 40 basis points (0.40%) and are below their year-ago levels. 15-year...
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