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Posts Tagged "Touchette Team"


  • Who’s Afraid of the FHA?

    January 12, 2017 /
    Pickett Street Properties Team /

    At the beginning of the week, the Federal Housing Administration announced it will decrease its annual mortgage insurance premiums by .25% annually or from .85% to .6% per year. This measure will go into effect for new mortgages closing or starting disbursement on or after January 27, 2017. This is the first reduction in insurance premiums since January 2015, when the FHA reduced premiums by 50 basis points. While this decrease might seem modest, experts estimate that it is likely to save consumers hundreds of dollars each year. For instance, with this reduction a homeowner with a $200,000, 30-year fixed rate mortgage can expect to  save about $500 annually. Looking at the larger picture, it’s expected that the reduction in insurance premiums will in total save $5 million for about 1 million borrowers. The announcement arrived on the heels of the FHA’s fourth straight year of economic health. In fact, since 2012 the FHA has reportedly increased its assets by over $40 billion. With such successful economic growth, the FHA has determined that offering lower prices to borrowers is fiscally responsible. The FHA’s decision further cements its importance for prospective homeowners. Since the Great Recession, FHA loans have been vital…Read more

  • Education = Power.

    December 2, 2016 /
    Pickett Street Properties Team /

      Mortgage Rates on the Rise as Equities Recover As expected, mortgage rates climbed during Thanksgiving week as equities recovered based on speculation of economic expansion. In fact, these market conditions led the Dow Jones Industrial Average to record highs. In general, with election season fading into the rearview mirror and with Trump beginning to assemble the foundations for his political team, it’s expected that markets will return to a sense of normalcy after their initial uncertainty. That’s not to say that we won’t see any more volatility; in fact, market experts expect that, even if things are settling down now, we should expect a few more market surprises in the foreseeable future. Any political concerns aside, it’s important to note that mortgage rates are increasing, just as this blog has predicted on numerous occasions. More specifically, just before Halloween, the average 30-year APOR was about 3.52%. By the end of the first week in November, that rate had recorded a modest increase and risen to 3.58%, while it rose again the following week to 3.61%. By the end of Thanksgiving week, the average 30-year APOR had increased to about 3.98%. Likewise, MarketWatch estimates that the average 30-year FRM has…Read more

  • Did you know that in the 80’s the mortgage rate was 16.6% at one time?

    May 4, 2016 /
    Pickett Street Properties Team /

    On Wednesday, the Fed voted to maintain the current rate of interest but did signify the possibility of rate hikes later in the year. As such, the federal funds rate will remain in the current range of 0.25-0.5%. In its press release, the Fed indicated a sense of optimism in regards to the presence of improvement in both household incomes and the labor market. Additionally, the Fed noted the housing sector has continued to improve since the beginning of 2016. However, inflation is still below the Fed’s ideal rate of 2%, while consumer spending, investment in the business sector, and net exports are not as strong as they could be. The Fed’s overall consensus is that, while the economy is still showing steady signs of improvement, there are still a few obstacles in the way. As such, the Fed has chosen to keep the federal funds rate unchanged for the time being. The Fed’s next meeting will take place in June, and there is a possibility that we’ll be seeing rate increases by July. At any rate, the Fed hopes to authorize about two rate hikes during the remainder of 2016. How Does This Affect Mortgage Rates? Contrary to a…Read more