In the second quarter, 39% of the homeowners who refinanced their homes got a mortgage at least 5% larger than the original loan, down from a revised 42% in the previous quarter, according to Freddie Mac.However, the percentage was higher than the 33% level recorded a year earlier, the government-sponsored enterprise said in its quarterly refinance review. "The very low interest rates that we saw in March, when 30-year fixed-rate mortgage rates averaged 5.4%, caused an increase in overall refinancing activity for the loans that closed in the second quarter," said Amy Crews Cutts, Freddie Mac's deputy chief economist. "When we see regular rate-and-term refinancing increase, the share of cash-out refis drops. Most homeowners are happy to reduce their monthly payments and don't feel a need to withdraw equity; however, lower mortgage rates make home-equity conversion an affordable option for financing other investments such as home improvements or paying for college."
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The nonpayment rate for non-qualified mortgages is up 21 basis points from February and 134 basis points from March 2023, Morningstar DBRS said.
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The government mortgage-bond guarantor will require additional information on foreclosure prevention actions, and retire some forbearance reporting.
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But views are split, at least in the near-term on whether rising mortgage rates are holding back the Spring home purchase season.
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The top five producers had an average dollar volume of FHA loans of more than $50 million in 2023.
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The tool will provide helpful HELOC-related information to customer support staff to streamline the application process, Figure said Thursday.
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The five states with the lowest property taxes have an average effective real-estate tax rate of 0.44%.
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