Amy Cutts
Amy Cutts
activity billion borrowers cash combined cost equity estimate expect fourth higher home interest large led lines overall prime relatively remain revised second share slightly strong third took volume
Refinancing activity was very strong in the fourth quarter, even with higher interest rates. The large share of borrowers who took cash out when refinancing their mortgages combined with the strong overall refinance volume led to an extraction of home equity through prime first-lien refinances of $70.3 billion, slightly higher than the revised estimate of $67.2 billion extracted in the third quarter. We expect the share of all refinance borrowers who take out cash to remain high in 2006 because of the relatively high cost of second mortgages and home-equity lines of credit.
below currently housing mortgage rates six
The onset of 2005 bodes well for the housing industry. Long-term mortgage rates are currently below six percent.
buying decision expectation house houses housing increasing people prices purchasing seen true ways wealth
Part of the purchasing decision for buying a house is an expectation of what housing prices are going to do in the future. It's true that houses are getting more and more expensive, but people are increasing their wealth in ways we haven't seen in a while.
bonds caused employment extension fall health interest investors last mortgage rates report treasury weak worried
Last Friday's unexpectedly weak employment report caused interest rates on long-term Treasury bonds and, by extension mortgage rates, to fall as investors worried about the health of the U.S. economy.
attention paying
It is something that we are paying attention to very closely.
believe bond market
Every once in a while the bond market does believe Greenspan.
ahead bit bond causing continued correction eight fell few financial markets mortgage past quickly rates rise saw time volatility week yields
The bond markets got a little ahead of themselves, causing yields to rise too quickly over the past few weeks. This week saw a bit of a correction and mortgage rates fell for the first time in eight weeks. Continued volatility in financial markets, however, will keep rates teetering up and down for some time to come.
benefits last might next quarter second
The benefits have been really widespread. Who is in first place one quarter might be in second place next and last place down the road.
best borrower borrowers current debt decision dominant driver finance home looking mortgage option payment primary product project recent savings took year
The interest-rate savings are not a primary driver of the decision to refinance a fixed-rate mortgage in the current environment. Now, the dominant refinance borrower is looking at the best way to consolidate debt or finance a big project such as a home improvement. And we also have borrowers who took out adjustable-rate mortgages in recent years that are scheduled to have their payment reset this year that may be looking at the option to refinance into a fixed-rate product or into another adjustable-rate mortgage.
below calmed chance expected fixed giving hike mortgage near optimistic outlook percent rate rates stay steady tuesday
The Fed's rate hike on Tuesday was expected and the Fed's cautiously optimistic outlook calmed the market. As a result, 30-year fixed mortgage rates should stay steady near or just below 6 percent for a while, giving prospective homebuyers another chance to get in with a low rate.
above below contract expect four historical last mortgage percent rates remain rise rising weeks year
Even with rising mortgage rates over the last four weeks, 30-year fixed-rate mortgage rates remain an historical bargain. To date, contract rates for these mortgages have been below 6 percent for 31 weeks in a row, and we don't expect these rates will rise very much above 6-1/4 percent by year end.
alan chairman cool effective efforts evidence federal greenspan reserve
That's a big slowing. It's evidence that the Federal Reserve and Fed Chairman Alan Greenspan are being effective in their efforts to cool the economy.
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With financial markets more optimistic that the economy is expanding nicely, mortgage rates had nowhere to go but up this week. Then, as a result of the GDP figures released today (Thursday), the market began weighing which part of GDP it feels is most dominant, growth or inflation.
appreciation five good housing percent rate reflects strong
Five percent on its own would be good news. That's a good rate of appreciation and reflects a strong housing market.