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US Mortgage Rates Dip for Long Term Loans After End of Year Rise

Mortgage rates dipMortgage hunters will be keenly looking at mortgage rate rates now as they consider whether to enter the market and buy a new home. We may be seeing a dip on a 30-year home loan after trending up for nearly three months.

Early indications are that applications for U.S. home mortgages increased last week as lending rates eased-off from their pre-Christmas highs, industry experts rumour.

The Mortgage Bankers Association will report soon as the market looks to see whether 2011 will see hoped for upturns in the housing market. U.S. Treasury yields also soared in late 2010 with a negative effect on refinancing with the mortgage market.

Some have wondered whether legal action in connection with the Ibanez case. That is where two mortgage cases were decided at once, and in which the banks could not show that they were entitled to foreclose because in the case of each of the mortgages it was found that there were holes in the chain of title, and judged that the banks could not or didn’t then close.

The decision initially will only directly affect the two foreclosures in question. However, the application of the principles established in this case by the lower courts in Massachusetts will make foreclosures in the Bay State much more difficult and expensive for the banks. The time it takes to foreclose in Massachusetts is likely to increase.

Basically, this could raise the costs for lenders and put some marginal pressure on them to raise rates to cover this.

Another factor in the mortgage market which may to an extent influence rates over the next few weeks will be whatever the Obama administration proposes to do about the general state of nation’s mortgage finance system.

They must produce a long-term plan for replacing the failed government-sponsored lenders, Fannie Mae and Freddie Mac. This will be a crucial step for the future to endeavour to avoid the possibility of future over commitment to sub-prime mortgages by the nation’s lenders.

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