Scott Fowler's (sfowler) Blog

Mortgage approvals don't last forever.  A conforming mortgage approval from Fannie Mae or Freddie Mac has a shelf-life of 120 days. After 120 days, the approval expires and a mortgage applicant must re-submit his application for consideration. In addition, a mortgage approval can "expire" within ...

Mortgage rates rocketed higher last week, stunning active home buyers and mortgage rate shoppers.  Some conforming mortgage rates rose by as much as three-quarters of a percent before Friday's closing. Even in a year in which mortgage rates have been extremely volatile, last week's spike was a la...

Falling oil prices is one reason why mortgage rates are dropping for the first time in 6 days.  Oil is off $9 per barrel from last week, a shift that correlates to $0.23 per gallon of unleaded gas, roughly. This drop is good news for both home buyers and "rate shoppers" -- high gas prices is par...

Mortgage financier Fannie Mae is toughening its mortgage application decision-making process effective Monday, June 2, 2008. The new guidelines will force many Americans to face higher mortgage rates, higher loan fees, or to be shut out from "prime" mortgage rates altogether.  The new "mortgage r...

    The monthly S&P/Case-Shiller Housing Price Index is a popular and often-quoted measurement of the housing market's health.  The chart above is sourced from its report published yesterday. In 18 of the 20 largest metropolitan areas, home values declined at a slower pace than in the previously ...

Three weeks after adjourning, Federal Reserve officials release detailed minutes of their most recent meeting.  The April 30, 2008 minutes were released Wednesday and it affirmed traders' beliefs that the Federal Reserve will not be in a hurry to lower the Fed Funds Rate again. This is bad news f...

High oil prices are derailing the mortgage market this week, taking an almost-vertical path higher.  Since mid-February, prices are up by 50 percent. Rising oil prices can be a threat the U.S. economy because with every extra dollar that Americans pay to energy companies, there is less money avai...

A part of the new economic stimulas package is an increase in conforming loan limits in high cost counties.   The conforming limit is currently 417k.  For those eligible, 30 yr fixed rates with no pts and no origination fees average 5.875% for loan amounts up to 720k.  Program is available for ne...

Loan-to-value is a math formula that represents the relationship between how much a home is "worth" and how much money is borrowed against it. Loan-to-value is often abbreviated as "LTV" and is one of the many factors that lenders consider when underwriting a mortgage application.  The math formu...

  Yesterday, several mortgage lenders issued three separate "rate sheets" in response to the changing mortgage market.  It was the fourth time in the last 6 trading days that mortgage lenders issued multiple rate sheets in a day, and continued the trend that started in mid-January. The yo-yo natu...