Tag Archives: Rates

Mortgage rates fell to lowest for 10th time, 4.32 percent

U.S. mortgage rate fell to the lowest level for the tenth time in 11 weeks as yields on government debt dropped and investors concerned about the economy.

 

Freddie Mac (OTCBB: FMCC), a government sponsored enterprise (GSE) of the United States federal government, said Thursday that interest rates on U.S. 30-year fixed mortgage, the most widely used loan, was 4.32 percent the week ended September 2, down 0.04 percent compared to the last week. 4.32 percent is the lowest since The Federal Home Loan Mortgage Corporation (FHLMC) started tracking rates in 1971.

 

In term of the average on 15-year fixed loan, the rate was down 0.05 percent from the last week. There have been decline in rates since springs as investors have moved to Treasury bonds for the shake of safety, which has lowered their yields. Mortgage rates haves a connection with yields on Treasuries on mortgage-backed securities.

 

15-year mortgages averaged 4.54 percent, the one-year ARM 4.62, and the 5/1 ARM 4.59 percent a year earlier.

 

Amy Crews Cutts, Freddie Mac deputy chief economist, said in a statement that the price growth of core personal expenditures in one year kept unchanged at 1.4 percent in July.

 

Federal Reserve Chairman Ben Bernanke also said that inflation should remain near current readings for some time before rising slowly amid growing economy and reasonably stable inflation expectations.

 

Refinancing is at its highest level since May 2009. However, a wave of refinancing from borrowers appeared due to the low rates, with almost 83 percent of all new loans.

 

Mortgage applications increased 2.7 percent last week as investors have been seeking lower rates. Nevertheless, the rock-bottom rates could not lift the slumping real estate market up, offering a glimmer of hope for the market. It has failed to find footing in the aftermath of the expiration of popular home buyer tax credits.

 

It is over a decade since home sales have been at its lowest level, tumbling in recent months while home prices are forecast to trek downward again due to increasing supply of homes and mounting foreclosures. Potential home buyers are reluctant to purchases amid fragile economic growth and high unemployment rate. They may be waiting for even lower home prices.

 

Certainly, home sales are greatly impacted by the lowest mortgage rates in decades. However, home purchase demand remains muted, according to Diane Saatchi, senior vice president at Saunders & Associates in Bridgehampton, New York.

 

The second-largest U.S. mortgage finance company got mortgage rates together from lenders countrywide from Monday to Wednesday of each week to calculate the national average. There is a dramatic fluctuation in the rates even within a given day.

Economics is the study of our lives,our jobs, our homes, our families and the little decisions we face every day. Thus, I am keen on reading and studying economic issues.

Nomis Forum 2015 Drives Pricing Advantage Into the Mainstream; Banking Innovators Gather to Sharpen Pricing Skills Before Interest Rates Increase


San Francisco, CA (PRWEB) April 13, 2015

Nomis Solutions, global pricing and profitability technology provider for the financial services sector, is welcoming innovators in banking from all over the world to the 8th annual Nomis Forum beginning today at the Fairmont Hotel in San Francisco.

This year’s Forum’s theme is Keep Calm and Be Prepared. Experts from Nomis and banking industry executives are providing thought leadership and advice timed to help banks take advantage of changes in interest rates. The Forum also will address better ways for banks to compete as new business models begin to take shape from a wave of innovative market entrants including peer-to-peer lenders.

Nomis and its industry partners have been working to make price optimization a core competency of the banking industry. Interest in increasing bank capability in price optimization has never been stronger, signifying how this discipline is now becoming mainstream as the early majority of the market now joins the innovators. Nomis customers used the Nomis Price Optimization Suite to optimize $ 1 trillion dollars in assets and liabilities in 2014 alone. Since inception, Nomis technology has been used by Nomis’ banking customers to generate over $ 1 billion dollars in additional revenue, harvested primarily from deposit and lending products that were not priced effectively.

Nomis CEO, Frank Rohde, explains:

“Pricing innovation used to be a ‘nice-to-have.’ Now, with the expectation of rising interest rates, and the growth of disruptive new entrants into the banking sector, it’s a ‘must-have’ for banks if they want to compete effectively against both these new competitors and their traditional peers.

We’ve typically seen that once interest rates start moving, they change very frequently. The ability to price deposits, loans, and mortgages effectively in real time becomes vital to protecting and growing market share while pricing fairly.”

As in previous Forums, delegates are being given exclusive content, insight, and price innovation approaches for both lending and deposits.

“Nomis Forum is now a well-established event in the banking industry where the best of the best come to sharpen their pricing skills,” continued Rohde. “This year we are seeing an unprecedented number of new attendees who are now recognizing that price can be a key source of competitive advantage.”

Some of this year’s keynote speakers include:

Frank Rohde, Nomis CEO – Frank will discuss the drivers of pricing innovation and highlight how Nomis customers are optimizing these drivers to grow profitably.

Richard Swart PhD, University of California, Berkeley – Dr Swart will cover the growth of alternative finance models and explain what traditional banks need to do compete effectively.

Kenneth Flaherty, Huntington Bank – Mr Flaherty will discuss his own team’s case study revealing how he helped Huntington gain competitive advantage in its home equity products and the lessons learned.

Amelia Gini, Bank of Ireland UK – Ms Gini will cover how she and her team are leveraging price sensitivity modelling with scenario planning to provide effective forecasting for new customer acquisition as well as attrition in a low-rate environment.

Fred Brothers, Chief Innovation Officer, FIS – Mr Brothers will cover the broader banking technology landscape and how banks can innovate to compete against their traditional peers as well as new entrants.

Nomis Forum 2015 runs through Wednesday, April 15th. You can follow insights from the event in real time using the hashtag #NomisForum15.

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About Nomis

Nomis Solutions provides best-in-class pricing and profitability technology for financial services companies. By combining a big-data platform with advanced analytics, innovative technology, and tailored business processes, Nomis delivers quick time-to-benefit and improves financial and operational performance throughout the customer-acquisition and portfolio-management processes.

In 2014 Nomis customers optimized over $ 1 trillion in banking transactions, and since inception, our customers have generated over $ 1 billion in incremental profits.

Headquartered in San Bruno, CA, Nomis Solutions also has offices in Toronto and London. Visit http://www.nomissolutions.com or contact us at info(at)nomissolutions(dot)com or 1-650-588-9800 or +44 0207 812 7251.






More Lending Rates Press Releases

Mortgage Rates Just Slightly Improved Ahead of FOMC Meeting

San Diego, CA (PRWEB) September 16, 2014

After weeks of sideways or higher movement for mortgage rates, today marked the first time this month where mortgage rates were just slightly improved according to Mortgage News Daily. This slight decrease is not something that borrowers should take for granted however, as the FOMC events that will be held tomorrow will likely result in more volatility in bond markets and subsequent movement one way or the other for mortgage interest rates. Blue Home Loans, Inc. a California full-service mortgage company that has been helping borrowers find the best loan programs and rates for many years, has been keeping track of recent mortgage rate trends and offers some advice for borrowers who are hoping to lock in a good rate for their home loan.

A September 16th report from Mortgage News Daily gives some insight into today’s mortgage rate movement. It says, “Mortgage rates experienced their first genuine improvement of the month today. The gains were nothing if not very small, but they ended an uncommonly long 11 business day streak of sideways to higher rates. 4.25% remains as the most prevalent conforming 30yr fixed rate for top tier scenarios with the day-over-day changes being limited to closing costs. Essentially, the losing streak of the past 2 weeks was the market’s way of getting into position for tomorrow’s big announcement from the Fed. Market participants have been concerned that the Fed could change their verbiage in such a way as to suggest an earlier eventual rate hike.”

The article further explains, “This debate has focused on the words “considerable time” which the Fed has been using to refer to how much time would likely pass between the end of asset purchases and the first rate hike. But whether that phrase changes or not, the Announcement will still be scrutinized for any additional clues. There’s tremendous potential for volatility tomorrow afternoon. It’s a situation where risk-takers could easily be rewarded if the Fed is friendlier than expected. The risk is equally present though, as tomorrow could confirm a new direction for rates and the end of positive trend that’s been in place so far in 2014.”

Blue Home Loans states that given tomorrow’s potential for volatility, locking in would be the safest course of action, one that those who are near to closing would especially be wise to take. However, those who can afford a little more risk might want to wait and see what happens after the FOMC announcement tomorrow. Rates could possibly go lower after tomorrow’s events and even if they do not, there may still be a very short time frame where borrowers can lock in their rates before the announcement has time to affect mortgage rates.

Those who do choose to float into tomorrow’s events should be able to rely on their loan officers to keep a close eye on tomorrow’s events so that they will be able to lock at a moments notice if things go south. Those who are just starting their loan process will have the chance to lock on application, but if they do choose to float it is important to find a loan company that will keep them informed of the best opportunities to lock in a good rate, or when locking would be the best option to prevent higher rates down the line.

Blue Home Loans can help California borrowers who are looking for the best rates, lenders and loan programs to find exactly what they need so that they can take advantage of today’s lowest mortgage rates and save money on their loans. As the Blue Home Loans website states,

“We make finding a loan simple because we have virtually every loan program available, regardless of the type of mortgage you are looking for. Whether you are dealing with bad credit, foreclosure, bankruptcy, or low credit scores, we can help you. It only takes us five minutes to find the right program that fits your needs.”

For more information on how Blue Home Loans can help California home loan borrowers get approved for their home purchase loan or refinance quickly, please visit BlueHomeLoans.com or call 1-888-929-BLUE (2583) to speak with an experienced mortgage professional.

California Bureau of Real Estate — BRE #01938557 NMLS #1162386







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