Archive for Lake Geneva mortgage
Have Lake Geneva Real Estate Mortgage Rates Bottomed Out?
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Lake Geneva real estate mortgage rates have troughed. Or, so it seems.
According to Freddie Mac’s weekly Primary Mortgage Market Survey, the average 30-year fixed rate mortgage is 4.00 percent nationwide — roughly the same rate as it’s been for 5 weeks.
During that times, rates have ranged between 3.97 and 4.02 percent with an accompanying 0.7 discount points, plus “typical” closing costs. Please note, Walworth State Bank does not typically charge points on these type of mortgages. Closing costs vary by state and 1 discount point is equal to 1 percent of your loan size.
In other words, to get the weekly, published Freddie Mac rate, borrowers in Wisconsin should expect to pay a complete set of fees to their respective lenders. The larger the loan, the higher the costs. “Low-fee” and “no-fee” loans are available, too — typically in exchange for a slightly higher rate.
A breakdown of the Freddie Mac survey shows that interest rates and discount points vary by region. Typically, states in the West Region offer the lowest rates but with the highest costs. East Region states work in reverse; rates are often highest but the accompanying points are fewest.
The most recent mortgage rate breakdown by region shows:
- Northeast Region: 4.00% with 0.7 discount points
- West Region: 3.96% with 0.8 discount points
- Southeast Region: 4.06% with 0.9 discount points
- North Central Region: 3.97% with 0.7 discount points
- Southwest Region: 4.04% with 0.7 discount points
What’s most notable, though, is that in all 4 regions, rates are well below their 2011 highs. Since mid-April, Lake Geneva real estate mortgage rates have been in descent, dropping for 5 consecutive months before reaching to their current, “rock-bottom” levels in early-November.
Since then, however, rates have idled and the forces that combined to make rates low throughout Lake Geneva mortgage are subsiding. The U.S. economy is showing signs of a rebirth; the Eurozone is edging closer to solvency; and the housing market is recovering.
So, if you’ve been wondering whether now is a good time to refinance, or whether higher rates will harm home affordability, the answer is yes. Get in touch with your loan officer to review your home loan options because, looking ahead to 2012, mortgage rates look poised to rise.
Have Lake Geneva Mortgage Rates Bottomed Out?
Posted by: | Comments
Lake Geneva mortgage rates have troughed. Or, so it seems.
According to Freddie Mac’s weekly Primary Mortgage Market Survey, the average 30-year fixed rate mortgage is 4.00 percent nationwide — roughly the same rate as it’s been for 5 weeks.
During that times, rates have ranged between 3.97 and 4.02 percent with an accompanying 0.7 discount points, plus “typical” closing costs. Please note, Walworth State Bank does not typically charge points on these type of mortgages. Closing costs vary by state and 1 discount point is equal to 1 percent of your loan size.
In other words, to get the weekly, published Freddie Mac rate, borrowers in Wisconsin should expect to pay a complete set of fees to their respective lenders. The larger the loan, the higher the costs. “Low-fee” and “no-fee” loans are available, too — typically in exchange for a slightly higher rate.
A breakdown of the Freddie Mac survey shows that interest rates and discount points vary by region. Typically, states in the West Region offer the lowest rates but with the highest costs. East Region states work in reverse; rates are often highest but the accompanying points are fewest.
The most recent mortgage rate breakdown by region shows :
- Northeast Region: 4.00% with 0.7 discount points
- West Region: 3.96% with 0.8 discount points
- Southeast Region: 4.06% with 0.9 discount points
- North Central Region: 3.97% with 0.7 discount points
- Southwest Region: 4.04% with 0.7 discount points
What’s most notable, though, is that in all 4 regions, rates are well below their 2011 highs. Since mid-April, Lake Geneva real estate mortgage rates have been in descent, dropping for 5 consecutive months before reaching to their current, “rock-bottom” levels in early-November.
Since then, however, rates have idled and the forces that combined to make rates low throughout Lake Geneva mortgage are subsiding. The U.S. economy is showing signs of a rebirth; the Eurozone is edging closer to solvency; and the housing market is recovering.
So, if you’ve been wondering whether now is a good time to refinance, or whether higher rates will harm home affordability, the answer is yes. Get in touch with your loan officer to review your home loan options because, looking ahead to 2012, mortgage rates look poised to rise.
Home Purchase Credit For Vets! – Lake Geneva Real Estate
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Click the post title above to watch today’s video! Catch all your real estate news and mortgage news with Frank Garay and Katie Evans here at www.LakeGenevaMortgage.com!
To check out the Trulia article mentioned in today’s show, click on the banner below:
Fed Minutes Suggest New Economic Stimulus Next Week – Lake Geneva Real Estate
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The Federal Open Market Committee released its November 2011 meeting minutes, revealing a Fed split on whether new stimulus is needed for the U.S. economy.
The Fed Minutes is published 8 times annually, three weeks after each scheduled Federal Open Market Committee meeting. It’s the official record of the meeting’s policy-shaping debates and dialogues.
The Fed Minutes is the lengthier companion piece to the FOMC’s more well-known, post-meeting press release.
As compared to press release which is concise and focused at 492 words, the Fed Minutes is comprehensive and broad, totalling 7,682 words over 11 pages, complete with charts.
The November minutes reveal Fed opinions on a variety of economic issues:
- On employment: Unemployment will gradually decline through 2014
- On housing: The market remains depressed. Foreclosures are “holding back” growth.
- On Lake Geneva real estate mortgage rates: The Fed Funds Rate should remain low until mid-2013
There was also discussion about the government’s revamped HARP program, and how it should help more homeowners get access to low Lake Geneva real estate mortgage rates. The Fed sees this as a positive for housing, and for the economy.
There was little in November’s Fed Minutes to surprise Wall Street, however, the Fed did discuss the possibility of new market stimulus, a topic Wall Street expects the FOMC to address next week at its last scheduled meeting of 2011.
Should the Fed introduce new market stimulus next week, and should it arrive in the form of additional mortgage bond purchases, expect for mortgage rates to fall across Lake Geneva, Wisconsin and nationwide. If the Fed declines new stimulus, mortgage rates should rise.
The FOMC meets Tuesday, December 13, 2012.
Tuesday, the Federal Open Market Committee voted to leave the Fed Funds Rate unchanged within its current target range of 0.000-0.250 percent.
The vote was 7-3 — the first time in 5 meetings that the nation’s Central Bank was non-unanimous and the first time since 1992 that the FOMC adjourned with as many as three dissenters.
In its press release, the FOMC had little good to say about the U.S. economy, noting that since its last meeting in July:
- Growth has been “considerably slower” than expected
- Labor market conditions have deteriorated
- Household spendng has “flattened”
The Fed also noted that the housing sector remains depressed.
On the positive side, the Fed said that business investment in equipment and software continues to expand, and that energy costs have dropped and no longer contribute to inflationary pressures on the economy.
In fact, the Fed worries that inflation may be running too low for the country’s good.
To that end, the Federal Reserve has pledged to keep the Fed Funds Rate in its current range near 0.000 percent “at least until mid-2013″. This is a departure from prior statements in which the Fed gave no such date.
Lake Geneva mortgage market reaction to the FOMC statement has been positive this afternoon. Mortgage rates in Wisconsin are improving, but note that sentiment can shift quickly — especially in a market as uncertain as this one.
If today’s mortgage rates look good in your household budget, consider locking in a rate.
The FOMC’s next scheduled meeting is September 20, 2011.
Lake Geneva Mortgage Rates Drop After U.S. Credit Downgrade
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Lake Geneva mortgage rates continue drifting downward, despite — or because of — a ratings downgrade on long-term U.S. government debt. Standard & Poors issued a single-notch downgrade after Friday’s market close, from AAA to AA+.
Of the roughly $9.4 billion in publicly-held U.S. debt, 72 percent is long-term (i.e. with duration of 2 years or longer).
U.S. short-term debt was not downgraded.
When an entity — government, business, or other — is cited for a credit downgrade, it means that the risk of lending money to that entity has increased. In theory, higher risk should lead to higher borrowing costs and higher consumer rates.
Except in today’s U.S. Treasury and mortgage bond markets, the opposite is occurring. U.S.-backed bonds are in demand, leading rates lower. It’s an unexpected response to the S&P downgrade.
There are 3 main reasons why Lake Geneva mortgage rates aren’t rising.
First, Wall Street is “brushing off” S&P’s downgrade, citing the rating agency’s opinion as flawed. This is, in part, the result of a supposed “math error” in the S&P findings, as caught by the U.S. Treasury.
Second, global finance leaders have made public statements since the Friday downgrade re-asserting their faith in the U.S. government’s ability to repay its debts. This is helped stabilize bonds as well.
And, third, of the three major rating agencies, only Standard & Poor’s downgraded long-term U.S. debt. Competitors Moody’s and Fitch instead chose to re-affirm the top-status rating for U.S. government-issued debt after last week’s debt ceiling accord.
The likely cause for falling rates today is that the global economy is showing signs of a slowdown and the U.S. Treasury market remains the largest and most liquid bond market in the world. Ergo, they’re relatively safe — despite the credit rating of the nation backing them.
Lake Geneva Real Estate Mortgages Effected By Fed Minutes Hint At New Economic Stimulus
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The Federal Reserve released its June 2011 Federal Open Market Committee meeting minutes Tuesday. It contained no surprises and, as such, mortgage rates in Lake Geneva, Wisconsin have idled in the hours since.
The Fed Minutes is published 8 times annually, 3 weeks after each scheduled Federal Open Market Committee meeting. It’s the official record of the meeting’s discussions and opinions.
The Fed Minutes is the more in depth companion piece to the FOMC’s more well-known, post-meeting press release. As compared to the brief-and-focused press release, by contrast, the Fed Minutes are long and detailed.
June’s press release was 458 words long. Its minutes totaled 6,889 words.
The June minutes reveal some intriguing perspectives from within the Federal Reserve, too.
- On growth: Economic recovery had been slower than the committee expected
- On housing: The market remains depressed. Foreclosures are “holding back” construction.
- On rates: The Fed Funds Rate should remain low for an “extended” period
In addition, the Federal Reserve discussed whether a new round of economic stimulus was necessary. Committee members agreed that a poor outlook for employment in the medium-term would make this move more likely.
There was little that surprised Wall Street in the June Fed Minutes. This is why market reaction has been muted since its release.
The FOMC meets next August 9. If jobs data continues to weaken between now and then, expect the stimulus chatter to continue. It’s unclear, however, how this would impact Lake Geneva mortgage rates.
For now, mortgage rates remain near their all-time lows, and they have much more room to rise than to fall. If you’re shopping for a loan, therefore, the timing is right for a lock.
Top 25 Least Expensive U.S. Cities – Did Lake Geneva, Wisconsin Make The List?
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A report issued Monday by the U.S. government showed core inflation rising 2.5 percent in the last 12 months for its biggest one-year gain since January 2010.
Everyday living is becoming expensive, it seems.
But there are some U.S. towns in which the cost of living remains affordable — and downright cheap — as compared to the national average. They’re detailed in a BusinessWeek piece titled “The Cheapest 25 Cities In The U.S“.
In comparing costs across 340 urban areas as compiled by the Council of Community & Economic Research, cities in Texas, Arkansas, Tennessee and Oklahoma ranked consistently high. Cities in Hawaii & Wisconsin did not.
Take note, though. Although the BusinessWeek piece highlights inexpensive cities in which to live, a low cost of living does not necessarily correlate to a high standard of living. Cost-leader Harlingen, Texas, for example, boasts a poverty rate nearly triple the national average.
Other “Inexpensive Cities” feature similar poverty rates.
The Top 10 “cheapest cities”, as shown by BusinessWeek are:
- Harlingen, Texas
- Pueblo, Colorado
- Pryor Creek, Oklahoma
- McAllen, Texas
- Cookeville, Tennessee
- Commerce-Hunt County, Texas
- Brownsville, Texas
- Fort Smith, Arkansas
- Muskogee, Oklahoma
- Springfield, Illinois
And, at the other end of the spectrum, the top 5 most expensive cities/areas were, in order, Manhattan, New York; Brooklyn, New York; Honolulu, Hawaii; San Francisco, CA; and Queens, New York.
Manhattan’s cost of living is more than twice the national average.
The complete list is available at the BusinessWeek website.
What’s Ahead For Lake Geneva Real Estate Mortgage Rates This Week: June 27, 2011
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Lake Geneva real estate mortgage markets improved again last week on a revised economic outlook for the U.S. economy, and ongoing concerns about Greece and its sovereign debt.
Conforming mortgage rates in Wisconsin fell last week and now hover near the all-time lows set last November.
Adjustable-rate mortgages are especially low.
There were three big stories last week that will carry forward into this week.
First, the Federal Open Market Committee voted to leave the Fed Funds Rate unchanged in its current target range of 0.000-0.250 percent. This was expected. However, the Fed revised its growth estimates for the U.S. economy lower. This was not expected.
Lake Geneva mortgage rates dipped on the news.
Second, Greece moved closer to avoiding insolvency. The nation-state’s parliament must now pass a package of spending cuts and tax increases to appease Eurozone leaders and the IMF. Without passage, though, bankruptcy may be unavoidable.
Worries about Greece’s fate sparked a bond market flight-to-quality. This, too, helped mortgage rates ease.
And, lastly, Thursday, the U.S. and other members of the International Energy Agency chose to release 60 million barrels of oil to the market over the next month. You’ve likely experienced the impact as the gas pump already — gas prices are way down nationwide.
Lower gas prices means fewer inflationary pressures and inflation is the enemy of mortgage rates. Less inflation, lower mortgage rates.
This week, Lake Geneva real estate mortgage rates may reverse.
There isn’t much new data due for release — inflation data due Monday, housing data due Wednesday, and a series of confidence reports throughout the week — but there are 3 scheduled treasury auctions that could pull rates up or down.
- Monday: 2-Year Treasury Note auction
- Tuesday: 5-Year Treasury Note auction
- Wednesday: 7-Year Treasury Note auction
If demand is high at any/all of the auctions, mortgage rates should drop. If demand is weak, mortgage rates should rise.
New Home Supplies Drop, And So Does Homebuilder Confidence
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On paper, the market for newly-built, Lake Geneva real estate single-family homes looks healthy.
Last month, the number of new homes sold on an annualized, seasonally-adjusted basis tallied 319,000. The May reading is the second-highest of the year, and 6 percent above the current 12-month average.
These are strong numbers in isolation. However, after accounting for the dwindling supply of new homes for sale as well, the figures look even stronger.
In May, at the current pace of sales, the complete, national inventory of new homes for sale would have been sold in just 6.2 months.
That’s the quickest pace in a year and a 3-month improvement from a year ago.
To hear it from homebuilders, though, you’d think that sales were crashing.
Homebuilder confidence slipped to a 9-month low this month; builders report slowing foot traffic; and the prospects for the next 6 months appear weak. This is not the portrait painted by HUD’s May New Home Sales report.
As a home buyer of Lake Geneva real estate, this dichotomy may work to your advantage.
Falling supplies and rising demand correlate to higher home prices. Yet, builders are pessimistic for their market. Therefore, despite the economics, psychology may help buyers experience more favorable negotiations, including complimentary upgrades and other builder concessions.
If you’re a buyer in today’s market, it’s a reason to consider the new home market. There may be good value once you know where to look.