Massachusetts Home Buyer Guide

U.S. Mortgage Interest Rates Near Record Lows

Average mortgage interest rates for 30-year, fixed-rate loans in the U.S. stood at 4.94 percent compared to 5.04 percent the previous week, United Press International (UPI) reported October 1, 2009.

A year ago, the average rate for the 30-year loan stood at 6.1 percent.

The last time the rate dipped below 5 percent was in May, when it averaged 4.91 percent. In the week ending March 26, interest rates hit a record low of 4.85 percent.

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U.S. Mortgage Applications Decline

U.S. mortgage applications declined 2.8 percent compared to the previous week, the Mortgage Bankers Association reported September 30, 2009.

Purchase loans fell 6.2 percent and refinance loans dipped 0.8 percent.

Mortgage applications increased 44.3 percent compared with the same week last year.

U.S. Mortgage Interest Rates Remain Steady

Average interest rates for 30-year, fixed-rate mortgage loans remained at 5.04 percent, United Press International (UPI) reported September 24, 2009.

A year ago, 30-year, fixed-rate mortgage loans averaged 6.09 percent.

Read The UPI Article

U.S. Mortgage Applications Increase 12 Percent

U.S. mortgage applications increased 12.8 percent compared to the previous week, USA Today reported on September 23, 2009. 

Mortgage interest rates dipping below 5 percent are credited with the surge in applications. The looming deadline to qualify for the first-time home buyer tax credit may also be responsible for the jump in mortgage applications.

"The MBA's seasonally adjusted purchase index rose 5.6% to 288.3, driven by applications for government-insured loans. The government purchase index was at the highest level ever recorded in the survey and the share of purchase applications that were government-insured was 45.7%, highest share since November 1990, the MBA said."

Refinance applications rose 17.4 percent. 

Read The USA Today Article

Mortgage Interest Rates Decline

The average rate for a 30-year, fixed-rate mortgage loan in the U.S. declined from 5.07 percent to 5.04 percent, United Press International reported September 17, 2009.

It was the lowest rate since May 28, 2009. The interest rate a year ago stood at 5.78 percent. 

Freddie Mac provided the data.

The average rate for a 15-year, fixed-rate mortgage loan stood at 4.47 percent, down from 4.5 percent the previous week. 

One mortgage broker told me Friday that he was locking in both FHA and conventional borrowers at 5 percent with no points.

U.S. Mortgage Applications Decline

As a result of weak refinance and home loan demand, U.S. mortgage applications declined 8.6 percent compared to the previous week, MarketWatch reported September 16, 2009.

The data comes from the Mortgage Bankers Association. 

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Purchase Loan Applications Highest Since January

U.S. mortgage applications increased 17 percent compared to the previous week, Reuters reported September 9, 2009. 

Low interest rates fueled the surge in applications.

The numbers come from the Mortgage Bankers Association.

"While home refinancing loans dominated demand [, up 22.5 percent], the appetite for applications to buy a home, a tentative early indicator of sales, hit its highest level since early January. The overall trend bodes well for the hard-hit U.S. housing market, which has been showing signs of stabilization."

Read The Reuters Article

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Mortgage Interest Rates Increase Slightly

Average U.S. interest rates for 30-year, fixed-rate mortgage loans increased from 5.12 percent to 5.14 percent, the Associated Press reported August 27, 2009.

The average rate on a 15-year, fixed-rate mortgage rose to 4.58 percent, from 4.56 percent.

Mortgage Applications Rise; Refinancing Fuels Increase

U.S. mortgage applications rose 7.5 percent compared to the previous week, Fox Business News reported August 26, 2009.

The data come from the Mortgage Bankers Association (MBA).

The MBA refinancing index rose 12.7 percent from the prior week, and the purchase index rose just 1 percent.

U.S. Mortgage Applications Decline

U.S. mortgage applications declined 6.3 percent compared to the previous week, CNN Money reported July 29, 2009.

It was the first time in four weeks that mortgage applications dropped. The data comes from the Mortgage Bankers Association. 

Applications for purchase loans were flat, but refinance loan applications declined.

Read The CNN Money Article

U.S. Mortgage Applications Rise

U.S. mortgage applications rose 2.8 percent compared to the previous week, CNN Money reported July 22, 2009.

The data comes from the Mortgage Bankers Association. Applications to purchase homes rose 1.3 percent.

"Home affordability has vastly improved with mortgage rates about 1-1/4 percentage less than a year ago and home prices, based on the S&P/Case-Shiller gauges, plunging an average 32% in the past three years."

Read The CNN Money Article

Home Buyer Tax Credit Loan For Down Payment

As part of the Massachusetts Recovery Plan, Governor Deval Patrick today announced July 14, 2009 a first-time home buyer tax credit loan program through MassHousing that will allow first-time home buyers to borrow up to $8,000 in advance of their federal tax credit for homes purchased with a MassHousing loan before December 1, 2009.

The loan will allow Massachusetts home buyers to use the $8,000 tax credit from the federal Housing and Economic Recovery Act (HERA) of 2008 as a funding source at the time of closing to help purchase the home (i.e., for down payment and/or closing costs). Under HERA, the maximum available credit is $8,000 and is claimed when home buyers file their 2009 federal tax return.

Applicants must meet certain qualifications, including, (1) applicants must be first-time home buyers using a MassHousing mortgage through a MassHousing-approved lender; (2) home buyers must use the home as a principal residence for a minimum of three years (the tax credit loan cannot be used for investor properties); and (3) home buyers must purchase a one, two, three or four-family home from a seller unrelated to the buyer by November 30, 2009.

Home buyers who take advantage of the program will have the principal and interest payments on the tax credit loan deferred from the time of closing until the loan due date of June 1, 2010. If the loan is not repaid in full by June 1, 2010, the loan will be amortized for 10 years at the same interest rate as the borrower's first mortgage loan.

I only have one question. Why wasn't this program launched three or four months ago? There's only about three months left to find a home and still have enough time to close before December 1, 2009.

Read The Press Release About The Home Buyer Tax Credit Loan

Tax Credit Can't Be Used For Down Payment

There has been some confusion recently by consumers who have been led to believe that they can use the $8,000 first-time home buyer tax credit for their down payment to buy a home.

Home buyers cannot use the $8,000 tax credit for their down payment.

There is a way to use the tax credit to cover closing costs.

The U.S. Department of Housing & Urban Department (HUD) announced May 29, 2009 that FHA-approved lenders may develop bridge-loan products that enable first-time home buyers to use the benefits of the federal $8,000 first-time home buyer tax credit for closing costs.

FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent required by FHA.

The bridge loans can't be used to cover the minimum 3.5 percent down payment.

Home buyers applying for FHA-backed financing with an FHA-approved lender that offers a bridge-loan program can get a bridge loan to bring down the upfront costs of buying a home significantly, but would still have to come up with the minimum 3.5 percent down payment.

Download First_Time_Home_Buyer_Tax_Credit_Brochure

HUD Press Release

'Mega Mortgages' On The Rise

A report by Boston Business Journal Reporter Lisa Van der Pool states that the number of $1 million plus mortgages have risen in recent months. Watch the NECN video below for more details.

U.S. Mortgage Interest Rates Increase Slightly

The average interest rate for a 30-year, fixed-rate mortgage loan increased slightly from 4.84 percent to 4.86 percent, United Press International (UPI) reported May 14, 2009.

A year ago, the same loan averaged 6.01 percent.

Read the UPI Article

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