The difference between the rates on 30- and 15-year mortgages is now 0.87%, the highest in years. Since 2006, this difference has averaged 0.46%, but this difference has been increasing for 11 straight months, indicating that consumers who take out a 15-year loan are getting a record-large discount over those who take out a 30-year [...]
Tag Archives | Mortgages
WSJ: 25% of Illinois mortgage apps denied
Over a quarter of mortgage applications made to top lenders in Illinois are denied, according to an analysis by The Wall Street Journal (“Tighter Lending Criteria Crimps Housing,” June 25). Illinois, at a 25.5% rejection rate, is below the national average of 26.8%. Some states, including Texas, Mississippi, and Vermont have denial rates of 35%. [...]
Fall in mortgage delinquency is a non-event
Most news outlets (see Washington Post, LA Times, Chicago Tribune) correctly reported that the number of mortgages in forclosure or delinquent declined over the last year. None of the sources I saw mentioned that homes in foreclosure have tied their all-time high, though Calculated Risk led its headline with that item. Is this important? Sort [...]
FHA loans triple in 3 years: now 24% of total
FHA-backed loans, once a small part of the mortgage market, now represent almost a quarter of all new housing loans in the U.S., according to new Census data. (See here, and then click on “Quarterly Sales by Price and Financing.) Some of this difference is due to the lower volume of total loans. But the [...]
Illinois below average in closing costs
Closing costs on a $200,000 house in Illinois are $3,505, according to a study by Bankrate.com–and that places our state a favorable 31st out of 52 areas covered. At just over $3,000, Arkansas is the cheapest place to close. New York is most expensive at $5,623. Texas, Utah, California, and Alaska were among the most [...]
No real relationship between mortgage rates and home prices
A writer at the New York Times tries to explain why you get something like this when you chart mortgage rates and home prices: Here is the explanation from Calculated Risk: It is true that low rates make buying more attractive as compared to renting. And that can increase the demand for buying – and [...]
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