Weekly Market Update
Here is what was at the top of the headlines for the mortgage industry this past week.
Fannie Mae Official Details Plans on Low Down Payment Mortgages. In an interview, the chief executive of Fannie Mae, Timothy J. Mayopoulos, said that he expected Fannie’s low-down-payment mortgages to cost the borrower less than similar loans available under certain other government programs. But he also said that Fannie’s loans would require private mortgage insurance on top of the down payment, a stipulation that might, in theory, limit the size of the program.
Fed’s Bullard Upbeat on Economy. Federal Reserve Bank of St. Louis President James Bullard said in a television interview Tuesday that he is upbeat about the economy and doesn’t think any new central bank stimulus is needed to help keep the U.S. on track for 3% growth.
Jobless Claims Dropped 10,000 to 278,000, the Second-Lowest Level of the Year. In the week ending November 1, the advance figure for seasonally adjusted initial claims was 278,000, a decrease of 10,000 from the previous week’s revised level. The four-week moving average, a less-volatile measure of job cuts, reached the lowest level in more than 14 years, failing 2,250 to 279,000, the lowest level since 2000.
Refinancing Boosted by Declining Mortgage Interest Rates. The decline in mortgage interest rates to a 17-month low in October provided a temporary boost to refinancing activity, says Capital Economics in a client note.
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About the Author
Before opening On Q Financial in 2005, John Bergman originated and funded 450 units a year as a loan officer. He founded the company with just $1M of personal life savings—committed to his vision for building the best independent mortgage organization in the industry.View John's Profile