Month: August 2023

Apache is functioning normally

The average U.S. mortgage rate for a 30-year fixed loan fell one basis point this week to 2.71%, Freddie Mac said in a report on Thursday – the lowest rate in the survey’s near 50-year history. This week’s rate broke the previous record set on Nov. 19.

The average fixed rate for a 15-year mortgage also fell last week to 2.26% from 2.28%.

With this week’s record drop, there have now been 18 consecutive weeks when average mortgage rates have been below 3%. This also marks the third time in the survey’s history that rates have fallen below 2.75%, and the 14th time this year rates have broken their own record.

According to Sam Khater, Freddie Mac’s chief economist, despite these persistently low mortgage rates, home sales are facing significant challenges.

“While homebuyer appetite remains robust, the scarce inventory has effectively put a limit on how much higher sales can increase. Unfortunately, the record low supply combined with strong demand means home prices are rapidly escalating and eroding the benefits of the low mortgage rate environment,” Khater said.

Reports of even lower rates circulated on Wednesday after United Wholesale Mortgage announced it was offering mortgage rates between 1.99% and 2.5% on FHA loans through its Conquest Program. Those rates will be available on FHA purchase mortgages, FHA rate and term refinances, and FHA streamline refinances, but not all borrowers will qualify for the products.

Into the final month of the year, economists are predicting low rates to hold out, but what 2021 will look like for the rate market is still up for debate.

On Wednesday, Mortgage Banker Association’s senior vice president and chief economist Mike Fratantoni said fiscal policy will play an important role in determining the direction of interest rates in 2021.

“While we think the economy, the job market, and distressed households and businesses need the support such a package could bring, the size of the debt and the required debt issuance needed to finance these supersized deficits, will likely put upward pressure on longer-term rates,” Fratantoni said.

This means a steeper yield curve in 2021, and since rates are priced off the longer end of the curve, the most likely outcome is somewhat higher interest rates.

If rates remain as low as they are, Fratantoni estimates borrowers to ride the current refinance wave for even longer. A recent report from Black Knight estimated at current rates, 19.4 million “high quality” candidates are up for refinance savings eligibility.

Source: housingwire.com

Apache is functioning normally

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Source: wsj.com

Apache is functioning normally

After what seemed like a dismal few weeks, some good news is finally streaming back into the mortgage world.

First off, mortgage rates are super low again, with the 30-year fixed pricing below 4% at some lenders. It sounds like a broken record but I doubt anyone is complaining.

And because interest rates have returned to near-record lows, the Mortgage Bankers Association has upped its origination forecast for 2015.

The group revealed its forecast for 2015 this afternoon, guessing that total residential mortgage volume will be around $1.19 trillion next year.

If it happens, it’ll represent a seven percent increase from 2014, which is somewhat of a surprise given the recent downturn in lending.

Of course, things can shift pretty quickly in mortgage land, and anything contingent on interest rates will remain an estimate and nothing more.

However, the fact that Fannie and Freddie will again accept mortgages with 3% down payments should provide another boost, assuming such loans become widely available.

Purchase Loans Will Rise 15% in 2015

The MBA expects purchase originations to increase to $731 billion in 2015, up from $635 billion in 2014. That’s a healthy 15% increase, though not enough to get anywhere close to the numbers seen in 2012 and 2013.

The projected rise is partially related to the low rates and also the result of an improving labor market, which should translate into more home sales as household formation improves.

They believe monthly job growth will average 220,000 in 2015, while the unemployment rate is on pace to fall to 5.4% by the end of 2015 and to 5.2% in 2016.

Meanwhile, refinance loans are expected to dip to $457 billion in 2015 from $471 billion this year, though the MBA does expect an uptick as recent home price gains will allow more homeowners to refinance with positive home equity. Of course, that also means fewer borrowers will be utilizing HARP.

Either way, it won’t be enough to fend off home purchase loans. The purchase share of total mortgage volume should rise to roughly 62% in 2015, up from 57% this year.

And it is expected to increase to nearly 68% in 2016 as purchases continue to dominate the mortgage market, mainly because refinancing won’t benefit many individuals going forward.

For 2016, the MBA believes purchase origination volume will climb to $791 billion, while refinance originations are expected to dwindle down to $379 billion. Yikes.

That equates to total volume of $1.17 trillion, just below the 2015 forecast.

So the news is perhaps a little bittersweet, though home equity lending could also play a major role as homeowners look to tap equity without losing out on their ultra low first-mortgage rates.

For the record, the MBA also upwardly revised its 2014 origination estimate to $1.11 trillion from $1.01 trillion, and its 2013 estimate to $1.85 trillion from $1.76 trillion to reflect the most recent Home Mortgage Disclosure Act (HMDA) data release.

Source: thetruthaboutmortgage.com

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First Federal Bank will acquire the mortgage division of BNC National Bank, which will give the Florida-headquartered community-based bank a nationwide consumer direct mortgage platform.

The two banks announced they have signed a definitive agreement for First Federal to acquire certain assets and liabilities of BNC National Bank’s mortgage division on Wednesday. The purchase, which includes the bank’s consumer-direct technology platform, is expected to close in the second quarter of 2023. 

The BNC platform is expected to transition to the First Federal branch within a few months of closing. Terms of the transaction were not disclosed.

Headquartered in Bismarck, North Dakota, BNC National Bank is a registered bank holding company focused on providing banking and wealth management services to businesses and consumers in its local markets. 

“The Board of Directors made the decision to exit our nationwide residential mortgage origination business after extensive deliberations and concluding that this change in strategy is in the best long-term interests of the BNC, its shareholders and the communities we serve,” Michael Vekich, BNC National Bank’s chairman, said in a statement. 

As with the entire mortgage industry, BNC National Bank was heavily impacted by rising interest rates last year. The bank’s production volume more than halved to $1.04 billion in 2022 from the previous year’s $2.37 billion, according to data from Modex. NMLS showed the bank has 63 registered loan officers.

First Federal expects to retain substantially all employees to its residential lending team, Paul Ottendorf, division president of First Federal, said.

First Federal Bank, a community-based mutual institution headquartered in Lake City, Florida, has assets of more than $3.6 billion, according to its website. The bank, consisting of 25 branches in the Southeast and operations in the Midwest, serves mortgage, small business administration (SBA) and USDA customers.

First Federal will serve BNC National Bank’s mortgage customers from its existing locations in Overland Park, Kansas; Moline, Illinois and Bismarck, North Dakota locations and in the Phoenix, Arizona market upon completion of the transaction.

Source: housingwire.com

Apache is functioning normally

I‘m constantly amazed at the fact of how many young people I come across that don’t have any life insurance.  While they all have there different reasons, the most common reason I hear is that it’s too early to think about life insurance.  I couldn’t disagree more.

Most Important Question

Are you supporting individuals whose livelihood depends on your income? If the answer is yes, it’s time to look at life insurance.

Now, you may be saying: shouldn’t I wait to get a policy? Why should I pay premiums when I have so many other checks to write? Well, the reluctance is understandable: the perception is that life insurance is for old people, and when you’re 30 or 35, chances are you’ve got a long, great life ahead of you. But in financial terms, here is why this can be advantageous.

Healthy is Good

Typically, Americans shop for a life insurance policy in the middle of their life spans – when they are in their forties or fifties. At that time, they may have already fallen into the grip of bad habits (smoking, obesity, heavy drinking) and diabetes, heart disease, cancer or HIV may have entered their health picture. All these conditions can jack up premiums or make it harder to get a policy.

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Term Life Insurance is Cheap

Okay, maybe you won’t have to contend with any of the above health risks at 45 or 50 – but who knows? Buying a term insurance or permanent cash value life policy early in life, before you have to encounter any of these problems, should allow you to pay less expensive premiums. (Presuming you don’t face recurring risks to your health and safety today.) Getting life insurance quotes online are so easy nowadays, with sites like Matrix Direct offering you a free quote in minutes.

Did you know that premiums for standard-risk term life insurance fell 50% between 1994 and 2008?

Premiums have been getting cheaper and cheaper for new term life policyholders, partly because the mortality rate has dropped over the decades. In fact, the non-profit Insurance Information Institute says term insurance premiums have fallen by more than 4% per year since 2000, and the premiums on cash value policies are averaging roughly 5% lower today compared to a decade ago.

Do young singles need life insurance?

Good question. Some financial consultants will tell you there is no pressing reason for it. Yet if you are single, buying a term life insurance policy (or even a permanent life policy) early on could bring you a better deal and potentially guarantee your insurability.  I have to admit that I did not do this.  But I was fortunate to take out a term life policy early enough that the premiums were still very affordable.

Maybe it’s time. Time passes, things change, and so does your need for insurance. Check out Good Financial Cents 10 Best Life Insurance Companies for great resources to any of your questions. Even if you are insured, it’s important to keep up with change – as an example, the Insurance Information Institute estimates that about a third of families don’t update their life insurance coverage after a new baby comes home.  I’m an exception to this stat.  Not only did I increase my insurance after having our first child, but I’m now increasing it again with the soon arrival of our second.  I increased the amount dramatically so that I won’t have to worry about increasing premiums if we have another child.

If you’re young and you haven’t yet talked to a qualified insurance advisor, think about doing so today – you may be pleasantly surprised how affordable life insurance can be.

Source: goodfinancialcents.com

Apache is functioning normally

Kate Mazariegos has spent most of her life thrifting and antiquing. Using her talents to find unique pieces to work in clients’ spaces, Mazariegos is opening a brick-and-mortar location this weekend.

Located at 318 St. Elizabeth Street, Kate & Waverly Home will include second-hand items that Mazariegos has curated for those who might feel overwhelmed in a “typical” thrift store.

“When I walk into a typical thrift or second-hand store, I get excited. It is like a treasure trove of possibilities,” she said. “But several friends have let me know, over the years, that not everyone feels that way.

Using her design eye, Mazariegos will have products styled on shelves and furniture in a more minimal way so shoppers can see how it might look in their homes.

Her passion for thrifting began with her mother, who she said had an eye for spotting beautiful and unique items that could be used in the decor. Often these items were found in local thrift stores and at garage sales.

“I learned a lot during those years spent with her going from place to place and finding ‘treasures,’” Mazariegos said. “Even before I believed in it, people would tell me I should open up a place to sell antiques and other unique items that I find.”

Mazariegos has studied famous designers but is largely self-taught. She learned not only by accompanying her mother but also through her father, who is a carpenter.

“From birth, I was surrounded by major home remodel projects and helping my mom pick out wallpaper, paint colors, and tiles,” she said. “And I’ll admit, I poked fun at her constant rearranging of furniture and styling of shelves and end tables.”

She also helped her dad when he needed another hand.

“I loved it all, and I still do,” she said.

Mazariegos enjoys this community and wants to develop and move forward small businesses. She has created coworking spaces in the two back rooms of Kate & Waverly Home, where people who work from home or creative people who need space can work when needed – either collaboratively or alone to focus.

“I have several other ideas on how to utilize the space in a way that brings in and builds up a community that I am excited to implement in the next year,” she said.

Kate & Waveryly Home will have unique offerings in terms of style and format, even though she knows there are other thrift stores in the area.

“I also think of the world, as a whole, is in desperate need of more stores that spotlight second-hand items,” she said. 

While the focus is on second-hand, antique, and vintage home decor, she also has racks of curated second-hand clothing and accessories. She has collaborated with Madison Jones of Blue House Fragrances and created a custom fragrance for the shop, which will be available as a candle and linen and room spray.

“The candle is made of a glass that can be recycled, reused as a drinking glass, or returned to the store and cleaned and used for another candle,” she said. “The lid is made of cork, which is compostable. And the linen spray bottles are also glass that can be recycled, or can be returned to the store and reused as well.”

Mazariegos is also working with local craftsmen and artists creating pieces she will share on social media.

Kate & Waverly Home opens Saturday. To honor the family dog they recently lost, 10% of sales on Saturday will go to The Humane Society where they adopted Maggie. Drawings and giveaways will also happen throughout the day.

Mazariegos is active on social media and tries to share information daily. The design business is @kateandwaverly and the storefront is @kateandwaverlyhome. The website is kateandwaverlyinteriors.com. Products in the store will not be available online, but Mazariegos said that could change. 

Store hours will be 11 a.m. to 5 p.m. Thursday through Saturday, but appointments can also be made. She will be in her office at the store daily.

Source: owensborotimes.com