Current economic scene has hinted towards a fall in the Bank of England base rate from a three and a half year high of 4.75%. 78% of the property investors are contemplating refinancing their home loans. Are you thinking the same? This is the appropriate time for remortgage and moving to competitive interest rates. Remortgage is indeed a very cost effective option. A fall in the interest rates...

The Mortgage Market: an analysis

Smith

The mortgage market will carry on a solid growth this year in spite of the rising interest rates. The funding secondary market has witnessed the growing popularity of private label MBS last year.
The GSEs have been waging a war against predatory lending practices and the Alt –A market.

February saw a fall in the fixed rate MBS by 1 %.This is attributed to the lesser number of processing days and a higher refinancing index from the Mortgage Brokers Association. Investors have always found MBS very lucrative, even sometimes accepting low rates. The government backing is all that matters.

The mortgage debt outstanding growth rate for the last five years is 8.25 % riding far ahead of agriculture, oil, constructions and telecom services. Only the software market has a greater growth rate. A decade back the GSEs garnered only 30% of the mortgage loans but today it has 50% of the total US residential mortgages and by 2010 it will is estimated to reach 80%.

The North east states and the west which each covers 24 % of the mortgage origination volume have shown a home price growth in double digits. While Rhode Island and Nevada have been respectively showing price rates increase of 35% .The greatest price rise still is retained by Florida with 47% which lies in the minority zone.

The single family mortgage debt has increased by 196% in a decade and the home equity by 115%. Thus the increased number of mortgage originations. Coupled with economic factors are technological factors which have reduced the loan acquisition costs drastically. Today it is less than 1 %.

The GSEs have set a record in helping the low and middle income families secure a home and also helped in funding new loans. Though the new home purchase market is still lean, yet mortgages are being increasingly used for cash advances with employment levels still not healthy.The treasury bonds are also posing a threat to the MBS market , yet Freddie Mac, Fannie Mae and Ginnie Mae have sustained the pressure . More and more companies are shifting their status to Real Estate Investment Trusts (REIT) to adjust to the changing economic conditions.

With the economy slowly picking up the threads and the interest rising, we are sure to see a new range of mortgage products coming up and the GSEs are gearing to meet them .Mortgages are here to stay and they will power the country forward.

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Yahoo! News Search Results for mortgage

Mortgage rates remain below 5%, fall to 4.95% (USA Today)
Mortgage rates held below the 5% threshold for the second straight week, a report said Thursday, weeks before a government program that has been keeping rates low is scheduled to expire.
Average 30-year mortgage rate drops to 4.95%, Freddie Mac says (Los Angeles T...
The average interest rate on a 30-year fixed-rate mortgage dropped to 4.95% this week from 4.97% last week, Freddie Mac said Thursday.
Lloyds Banking to Allow Extra Mortgage Repayments Until 2011 (BusinessWeek)
Lloyds Banking Group Plc, Britain?s biggest home-loan lender, will allow customers to increase mortgage repayments without penalty, as the bank seeks to cut its 1.03 trillion-pound ($1.55 trillion) balance sheet.
Man accused of masterminding mortgage fraud is denied bail reduction. (The Pr...
James B. Duncan, accused of masterminding a $142 million mortgage and securities fraud based in Murrieta, Thursday was denied a reduction of his $5 million bail by a judge who said Duncan poses a threat to public safety.
Mortgage Rates Remain Below 5 Percent (ABC News)
Rates on 30-year fixed mortgages fall to 4.95 percent, weeks before Fed exit Mortgage - United States - Business - Financial Services - Connecticut
Yahoo! News Search Results for refinance

Pernod Ricard Plans to Issue Bonds to Refinance Absolut Buyout (Bloomberg)
March 10 (Bloomberg) -- Pernod Ricard SA , the world?s second-biggest liquor maker, is planning to sell six-year bonds to help refinance loans used to buy the Absolut vodka brand in March 2008.
Coal producer ICG prices stock, debt offerings (AP via Yahoo! Finance)
International Coal Group says it's priced stock and note offerings it's using to refinance debt. The Scott Depot-based company says in a regulatory filing Thursday that it's also upped the size of the offerings.
New Article on Fannie Mae, Freddie Mac HARP Mortgage Refinance Program Availa...
In a new article, AimLoan.com explains why Fannie Mae and Freddie Mac?s program to refinance underwater homeowners should be expanded, as lowered mortgage rates are key to economic recovery. (PRWeb Mar 9, 2010) Read the full story at http://www.prweb.com/releases/2010/03/prweb3690424.htm
New Article on Fannie Mae, Freddie Mac HARP Mortgage Refinance Program Availa...
In a new article, AimLoan.com explains why Fannie Mae and Freddie Mac?s program to refinance underwater homeowners should be expanded, as lowered mortgage rates are key to economic recovery.
ICTSI raises $250M from bond offer, sets higher capex for ?10 (Philippine Dai...
Port operator International Container Terminal Services Inc. (ICTSI) successfully raised $250 million from a recent sale of 10-year bonds, proceeds of which will be used to mainly refinance existing obligations.