Does anyone remember when the rate on the 30-year fixed mortgage was up around 8 percent? I do.

Perhaps that’s why it continues to stun me that a tiny shift in our now ultra low rates can have a huge effect on consumer activity, namely refinancing. No question, it is a statement on just how tight and how sensitive our current mortgage market is today.

According to the Mortgage Bankers Association’s weekly survey, “The Refinance Index decreased 9.2 percent from the previous week. The Refinance Index has decreased for 3 consecutive weeks, reaching its lowest level since May 6, 2011.”

The mortgage bankers cite a jump (and by jump, I mean more like a hop) in rates on the 30 year from 4.46 percent to 4.69 percent. This is the highest rate since mid-May, they note, which I will note was just two months ago.

Yes, that’s a pretty large jump, but we are still below 5! The trouble is that there is a very small pool of eligible refinancers right now, because 1) so many have already refinanced at these incredibly low rates, 2) many borrowers are still underwater on their homes, which makes them largely ineligible for super low rates and 3) many borrowers don’t have enough equity or the proper credit score to get into a refi that’s worth the cost.

Page 1 of 2 | Next Page
Show Entire Article

Did Markets Know Obama Was Going to Tap Oil Reserve?

‘Perfect Storm’ Coming for Global Economy in 2013: Roubini

Banks Are Finally Lending Again-Just Not to You

June Jobs Data to Show 125,000 Added: Hatzius

Visa Sees Lower Revenue Growth After Debit Crackdown

More Top Stories

Article source: http://www.cnbc.com/id/43654703?__source=RSS*blog*&par=RSS

Let me preface with an apology for the huge supply of numbers in this post, but if you can make it through them all, I think you will get the picture I’m drawing here.

The so-called “shadow inventory” of residential properties is falling, according to a new report from CoreLogic.

This is the number of homes with seriously delinquent loans (90+ days), loans in the foreclosure process and bank-owned homes which are not yet listed for sale.

The supply as of April 2011 declined to 1.7 million units, representing a five months’ supply. This is down from 1.9 million units, also a five months’ supply, from a year ago.

“The decline was due to fewer new delinquencies and the high level of distressed sales, which helped reduce the number of outstanding distressed loans,” according to the report.

Good news, no? Wait. There’s more:

“In addition to the current shadow inventory, there are 2 million current negative equity loans that are more than 50 percent or $150,000 “upside down.” These current but underwater loans have increased risk of entering the shadow inventory if the owners’ ability to pay is impaired while significantly underwater.”

And then there’s this other report from Lender Processing Services (LPS), which also reports a drop in newly delinquent loans, but gives the actual, mind-numbing numbers of loans in trouble:

Page 1 of 4 | Next Page
Show Entire Article

Oil Traders: Tapping Reserve Was ‘Genius’ Move by Obama

Tapping Oil Reserve Still Won’t Lower Gas Prices Below $3

Chinese Premier Declares Inflation Victory

Doug Kass: Ominous Pattern Confirms SP Is Challenged

Did the IEA Just Deliver a QE3 Quick Fix?

More Top Stories

Article source: http://www.cnbc.com/id/43495174?__source=RSS*blog*&par=RSS