Blog — Page 704 of 887 — First Rate Financial Group

01

Aug

Mortgage Rates

What’s Ahead For Mortgage Rates This Week – August 1, 2016

WhatsAhead072916 Last week’s economic reports included S&P Case-Shiller Housing Market Indices, reports on new and pending home sales, Freddie Mac’s weekly mortgage rates survey. The Federal Reserve released its customary statement after the scheduled Federal Open Market Committee meeting concluded; the Committee did not raise the federal funds rate of 0.25 percent, but indicated that economic risks were fewer, which suggested that the key Fed rate may be increased in September.

According to the S&P Case-Shiller 20-City Home Price Index for May, home price growth dipped from 5.40 percent in April to 5.20 percent in June as calculated on a seasonally-adjusted annual basis. Portland, Oregon led the 20-City Index with 12.50 percent growth in home prices annually. Seattle, Washington and Denver, Colorado rounded out the top three with readings of 10.70 and 9.50 percent annual growth respectively. Eight cities posted faster growth rates in May than for April. Analysts again cited short supplies of available homes and high demand for homes as reasons for rising home prices.

New and Pending Home Sales Increase

Sales of new homes reached a seven-year high and rose to 592,000 in June as compared to expectations of 562,000 new homes sold and May’s reading of 572,000 new homes sold. Analysts have consistently said that building more homes is the only way to solve the shortage of available homes. Rising sales of new homes are a step in the right direction, but builders cited labor shortages and lack of buildable land as hindering their ability to meet demand for homes.

Pending home sales also rose in June with an increase of 0.20 percent.Analysts expected new home sales to rise by 1.30 percent based on May’s negative reading of -3.70 percent. Pending home sales data assists with estimating future closings and demand for mortgage loans.

Fixed Mortgage Rates Rise

Freddie Mac reported higher mortgage rates for fixed rate mortgages; 5/1 adjustable rates held steady. The average rate for 30-year adjustable rate mortgages was three basis points higher at 3.48 percent; the average rate for a 15-year fixed rate mortgage was also three basis points higher at 2.78 percent. The average rate for a 5/1 adjustable-rate mortgage was unchanged at 2.78 percent. Average discount points held steady at 0.50 percent for all three mortgage types.

What‘s Ahead

This week’s economic releases include reports on personal income, inflation, and core inflation. Several reports on employment will be released including ADP payrolls, Non-farm payrolls, and the national unemployment rate. Weekly reports on mortgage rates and new unemployment claims are also expected.

29

Jul

By support

Home Mortgage Tips

Pay down Your Mortgage Faster by Eliminating These Five Unnecessary Household Expenses

Pay down Your Mortgage Faster by Eliminating These Five Unnecessary Household Expenses The monthly mortgage payment can be one of the most significant household expenditures for a family. However, while it can be a sizable amount, there are certain household things you may be able to eliminate that will help you put down more money and pay your mortgage off a little faster. If you’re interested in ways to save, here are some expenses you may want to consider cutting out.

Giving Up The Cable

Television is an important de-stressor for many people, but it can also be a considerable monthly expense that is often unnecessary. With borrowing materials available at the library and many videos available for streaming online, you can cut your cable cost and may be able to save more than $100 a month.

Coffee On The Go

It may not be a household expense, but the average person can rack up a lot of expenditures each month on caffeine alone. Instead of stopping at the local cafe for a quick fix, consider trying the office coffee or taking a thermos in the morning for savings that will add up by the week’s end.

Dinner On The Town

Going for dinner or getting take-out on the way home can be a great way to finish off a day, but it can also add up to huge monthly expenditures if you’re doing it frequently. While you shouldn’t cut out trying new restaurants altogether, ensure that it’s not something you’re indulging in all the time.

The Grocery Bill

You’ll be able to save a lot of money easily if you’re not buying lunches or dinners, but bargain shopping is still important when it comes to household staples. While this may not make a difference on each bill, it can add up to a considerable dent in your monthly payment overtime.

Saving On Your Smart Phone

Nowadays, most people have a smart phone and have exhausted their need for a landline, but phones can still be quite a money drain when it comes to extra data and an expensive plan. Instead of accepting your bill as is, talk to your provider about deals they can provide so you can save the difference.

The monthly mortgage payment can be a financial burden, but there are many simply ways to save through the year that will add up to big savings and a faster pay-off date. If you’re planning on putting your home on the market, you contact your trusted mortgage professional for more information.

28

Jul

By support

Home Mortgage Tips

Understanding Automated Underwriting and How It Impacts the Mortgage Application Process

Understanding Automated Underwriting and How It Impacts the Mortgage Application Process Whether you’re embarking on the process of obtaining a mortgage for the first time or just preparing yourself for the advances in the industry, the implementation of automated underwriting in recent years has significantly changed the application process. From the time you’ll have to wait to the documentation that is required, here are some of the details on what you can expect when dealing with an automated underwriter.

Reduction In Document Requirements

In the past, most homebuyers submitting mortgage application documents were required to go into their backlogs to provide the paystubs for the previous 2 months pay, as well as W2’s for the last 2 years. Now, with automation, most homebuyers will only need to submit their most recent paystub in order to move along to the approval process.

The Time Line Is Shortened

Since the loan approval process previously had to go through an underwriter, there was a delay between when the documents could be reviewed and approved, and how long it would take for this information to be passed on to the homebuyer. However, since a Findings Report is automatically created from the applicable data during the automated process, the timeline homebuyers have to wait is shortened considerably.

Approval Rates Are Improved

Previously, approvals that were completed by an underwriter were held to a standard that was made up of a person’s financial health and credit report, so having one and not the other could lead to a declined application. Due to the fact that automated approval is based on the degree of the deciding factors, homebuyers who previously may have been turned away have a greater chance of approval.

A Useful Bargaining Tool

While most homebuyers have identified their ideal home before getting too involved in the application process, automated underwriting actually enables those who want to apply to get approval prior to deciding on a home. Instead of being an expenditure of time, this can actually be a good bargaining chip when it comes to putting in an offer on the right home.

With the advances in technology and the ever-shifting real estate market, there are many changes on the mortgage market that are important for future homebuyers to be aware of. Fortunately, there are many advantages to the automation of underwriting that can offer great benefits to those going through the application process. If you’re applying for a mortgage soon, you may want to contact one of our mortgage professionals for more information.