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WASHINGTON, D.C. (May 27, 2015) – Mortgage applications decreased 1.6 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending May 22, 2015.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 4.07 percent from 4.04 percent, with points increasing to 0.35 from  0.32 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.  The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) increased to 4.06 percent from 4.04 percent, with points increasing to 0.29 from 0.25 (including the origination fee) for 80 percent LTV loans.  The effective rate increased from last week.

The average contract interest rate for 15-year fixed-rate mortgages increased to 3.29 percent from 3.26 percent, with points decreasing to 0.24 from 0.30 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

 

New York Home loans, Mortgages

 

 

 

 

Home Price Gains Accelerate According to S&P/Case-Shiller Index

Analysis “Home prices have enjoyed year-over-year gains for 35 consecutive months,” says David M. Blitzer, Managing Director & Chairman of the Index Committee for S&P Dow Jones Indices. “The pattern of consistent gains is national and seen across all 20 cities covered by the S&P/Case-Shiller Home Price Indices. The longest run of gains is in Detroit at 45 months, the shortest is New York with 27 months. However, the pace has moderated in the last year; from August 2013 to February 2014, the national index gained more than 10% year-over-year, compared to 4.1% in this release. “Given the long stretch of strong reports, it is no surprise that people are asking if we’re in a new home price bubble. The only way you can be sure of a bubble is looking back after it’s over. The average 12 month rise in inflation adjusted home prices since 1975 is about 1.0% per year compared to the current 4.1% pace, arguing for a bubble. However, the annual rate of increase halved in the last year, as shown in the first chart. Home prices are currently rising more quickly than either per capita personal income (3.1%) or wages (2.2%), narrowing the pool of future home-buyers. All of this suggests that some future moderation in home prices gains is likely. Moreover, consumer debt levels seem to be manageable. I would describe this as a rebound in home prices, not bubble and not a reason to be fearful.”  read more

Economic News

US interest rates still hold bearish technical biases and are now at pivotal levels. Yesterday’s decline in rates driven mostly by news from Europe and Greece as investors fret Greece may fail to meet the June 5th payment to the IMF. Likely Greece will dodge another bullet but some insurance is being taken into safety of the US government arms. US economic measurements remain soft; housing data slightly better but retail sales, durable goods orders, the regional Fed indexes soft, and the Fed poised to increase rates are a push-pull battle currently keeping interest rates in tight ranges over the past few weeks. We do not want to make any bullish bets until all of our models turn bullish, presently most are neutral.

The dollar continues to gain against the euro currency and yen, a negative for US businesses that export products but a support for US interest rates. Crude has declined $3.00 recently, another support for US long term rates as inflation fears lessen.

US interest rates still hold bearish technical biases and are now at pivotal levels.Yesterday’s decline in rates driven mostly by news frm Europe and Greece as investors fret Greece may fail to meet the June 5th payment to the IMF. Likely Greece will dodge another bullet but some insurance is being taken into safety of the US government arms. US economic measurements remain soft; housing data slightly better but retail sales, durable goods orders, the regional Fed indexes soft, and the Fed poised to increase rates are a push-pull battle currently keeping interest rates in tight ranges over the past few weeks. We do not want to make any bullish bets until all of our models turn bullish, presently most are neutral.

 

 

 

 

 

 

 

 

Housing Up, Rates Down

by John Sauro April 27, 2015

WASHINGTON, D.C. (April 22, 2015) – Mortgage applications increased 2.3 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending April 17, 2015. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 3.83 percent, […]

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New York Home Loan Rates Fall

by John Sauro April 14, 2015

      Can You Pay Off Your Mortgage in 5 to 7 Years? Fox News and Jordan Goodman Plain, Simple Proof watch Economic News More homeowners are cash-out refinancing A growing percentage of homeowners are taking out cash from the equity they’ve built up when they refinance, according to a report based on data […]

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Rates Lower on Poor Jobs Report

by John Sauro April 6, 2015

Weekly Survey of Rates from the Mortgage Bankers Association For the week of  March 25th Mortgage applications increased 9.5 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending March 20, 2015. The average contract interest rate for 30-year fixed-rate mortgages with conforming […]

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Fed Tapers $10B

by John Sauro June 23, 2014

Mortgage Rates and Bonds ended the week on a positive note, but are still trapped in the sideways pattern.  The Mortgage Bond rose by 16bp to end the session at 102.31. The Dow (16,947.08, +25.62) and the S&P (1,962.87, +3.39) both ended at fresh record highs. The Nasdaq closed at 4,368.03 up 8.71 points. Oil was last […]

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Jobs, Jobs, Jobs

by John Sauro June 9, 2014

Technically, the benchmark 3.5% Bond is trading just below resistance at the  25-day Moving Average and near the upper end of the year’s trading range.  We  will continue to carefully float, not lock mortgage rates at this time. Weekly Survey of Rates from the Mortgage Bankers Association For the week of June 4th, 2014  The average contract interest […]

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Home Prices Up 0.9% – Rates Move Lower

by John Sauro May 31, 2014

Mortgage Rates moved lower as Mortgage Bonds moved higher, with encouraging technical signs. We will float, not lock into Mortgage Rates into the weekend. However, if you’re closing soon, then lock. Mortgage Bonds finished at 105.91 up 9bp. The S&P closed at another record high – 1,923.57 up 3.54 points. The Dow finished at 16,717.17 up 18.43 points, […]

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Home Sales Up- Rates Down

by John Sauro May 23, 2014

  Mortgage Rates have revisited lows not seen since May 2013. We will continue to recommend floating/not locking rates headed into the weekend. Mortgage Bonds drifted higher in the shortened session, shrugging off a better than expected New Home Sales. The 4% closed at 105.56, up 3bp. Stocks close at 4pm and are currently holding […]

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Slow Economic Growth

by John Sauro May 19, 2014

The current trend direction for Mortgage Rates is Sideways to lower as Bond prices are at $105.31 after a volatile week. Therefore, we recommend floating, not locking into rates at this time. Stocks were near unchanged, but were much lower  before the housing data was released.  The closely watched S&P 500 traded under  its 50-day Moving […]

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Half of Connecticutians want to get the hell out

by John Sauro May 10, 2014

We continue to recommend short term locking mortgage rates, measured in a few days to a few weeks. Mortgage Rates remained relatively stable as Bonds finished the week down 12 basis points after revisiting October’s highs. The good news is rates have improved quite a bit since December. Stocks saw meager gains – the Dow […]

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