A recent study by Bank Rate found that while mortgage rates have plummeted from a year prior, the fees associated with processing a mortgage loan have soared by roughly a third.  This is/was to be expected however, as increased borrower scrutiny increase the time and costs associated with the new requirements imposed by Fannie and Freddie.

The Fed has targeted ultra low mortgage rates (and interest rates overall) to help prod a sluggish economic recovery.  The more money in YOUR hands (due to interest cost savings) the more money you’re likely to spend, and the more jobs and growth is created.  While the recovery is anemic at best, the economy does seem to have stabilized to some extent.

Due to the increase in lender fees and mortgage costs, it’s ever more prudent to have multiple lenders quote your loan.  The lowest interest rate may not always be the best deal, as buried and back end fees may substantially reduce your economic gain on a mortgage refinance or home purchase.

Free mortgage rate quotes are here online NOW! While LoanEXA is going through a minor re-design to properly note this fact, at no point in time will be you be asked for any form of payment to use the LoanEXA system.  Give LoanEXA a try – you have NOTHING TO LOSE, and THE LOWEST MORTGAGE RATE AND FEES TO GAIN!

After a several week surge upwards, mortgage rates finally took a breather this week as the average 30 year fixed mortgage dropped to 5.38% down from 5.59% according to Freddie Mac.  Some 30 year fixed rates were being quoted as high as 6% a couple of weeks ago, whereas a couple of months ago those same home loans were going for near 4.5%.

15 year fixed mortgage rates dropped to 4.89%, and five year adjustable rate mortgages dropped to 4.97%.  All good signs for the housing market and the economy overall!

Mortgage rates have been volatile, and it’s highly important if you’re shopping for a mortgage that you compare home loan quotes online early and often to make sure you get the best rate for your situation!

The Fed dropped rates a few weeks back, and today Bernanke opened the door yet again for further rate reductions. As previously mentioned, mortgage rates don’t necessarily track the fed funds rate, but rather act uniquely and in many cases are more closely correlated with the 10 year treasury.

With mortgage rates down nationally, mortgage applications are on the rise! This is a good sign for the broader US economy. We need stabilization of the real estate markets first and foremost.

Here in Las Vegas, home inventories were well over a 20 month supply a year ago – it was reported this week that there’s roughly a 9 month inventory on the market now. This is a great sign for one of THE SINGLE MOST depressed real estate markets in the country!

A 30 year fixed mortgage last week was roughly 6.24%, down about .23% from the prior week. This spurred the increase in mortgage loan applications.

We’re still a year into a bear market and suffering through one of the most devastating economies in years. It’s still a perfect storm of:

1. real estate prices depressed
2. institutional “de-leveraging” of their loan portfolios and business structure
3. foreclosures still rampant
4. mortgage rate spreads widening increasing rates (though this has reversed recently to some extent)
5. unemployment the highest it’s been since the 9/11 era
6. equity capital markets acting completely irrational and volatility at extreme levels
7. oil prices soaring, then subsequently falling
8. the dollar getting crushed, then recently recovering somewhat
9. the prospect of higher tax rates on capital gains, the wealthy, and small business
10. FEAR, FEAR, FEAR – 70% of the economy is directly related to consumer spending and the American population has no confidence, with statistical confidence levels at a 40 year low.

Mortgage loans being made now are good loans however – it’s nearly impossible to get a loan without a substantial down payment or equity in the collateral property. It’s also nearly impossible to get a home loan with poor credit, and forget about “stated income”!

The foreclosures will work their way through the system, as will the deleveraging process. Eventually home inventory will shrink, forcing real estate stabilization.

There are some bright sides to the economy and I choose not to be downtrodden with all of the negativity in the news. America is a resilient nation – we will bounce back, and likely stronger than ever!