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| MBA: Refi’s account for 75% of country’s mortgages |
MBA: REFI’S ACCOUNT FOR 75% OF COUNTRY’S MORTGAGESEven though mortgage rates likely will remain near historic lows, prospects remain dim that residential lending will stage a big rebound around the country this year, according to recent data from the Mortgage Bankers Association of America. Just how low are mortgage rates, and what are the forecasts for rates and mortgage volume this year? Freddie Mac’s survey of lenders for Jan. 28 showed a national average of 4.98 percent for 30-year fixed-rate mortgages. That survey also showed averages of 4.39 percent for 15-year fixed-rate loans and 4.29 percent for U.S. Treasury-Indexed one-year adjustable rate mortgages. Twelve months ago, the averages were 5.10 percent for the 30-year fixed, 4.80 percent for the 15-year fixed and 4.90 percent for the ARM. Freddie Mac does not report on mortgage rates in Nevada or other states. In April 2009, its national average of 4.81 percent for the 30-year fixed was the lowest since it began its surveys in 1971. The latest Freddie Mac survey pointed to research by the Mortgage Bankers Association of America (MBA) showing that refinancings are accounting for about 75 percent of the country’s mortgages. Last October, in its most recent forecast, the MBA estimated that total residential loan volume for 2009 would be about $1.9 trillion--with about 63 percent in refinancings. For 2010, MBA is projecting about $1.5 trillion in mortgages, with the “refi” share falling to about 50 percent. MBA expects rates on 30-year fixed mortgages will be around 5.6 percent by the end of this year, thus leading to fewer refis. Jim Freer is a special correspondent for CondoVultures.com. He is a veteran banking reporter and a consultant to the finance industry in South Florida. Copyright © 2010, Condo Vultures® LLC Don't forget to sign up for our weekly Market Intelligence Report™ for detailed condo reports. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database™ or view our Video Gallery. Looking for bulk projects direct from developers or lenders? Visit the Condo Vultures® Bulk Deals Database. Our new books, the Official Condo Buyers Guide to Miami™ , Miami's Great Condo Crash: A Chronicle of the Boom and Bust™ , and the First-Time Home Buyers Guide To South Florida™ are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure Database™.
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