Sales of previously owned homes fell to a 6 month low in May and prices dropped 4.6%from a year ago. The National Association of Realtors said on Tuesday that sales dipped 3.8% month over month to an annual rate of 4.81 million units. This is the lowest since November.

This is the second straight month of declines. The drop was smaller than economists had expected, but the April sales figure was revised lower, leaving a report that was largely in line with expectations in financial markets. Indications are pointing to a struggling housing market.

The drop in homes sales may eventually have an effect on homeowners ability to obtain financing. This dips may cause lenders to tighten up guidelines even more so. Lenders may become even more hesitant on lending money making it more difficult for homeowners to take advantage of record low mortgage rates.

Homeowners that can qualify should consider speaking with their mortgage professional to better understand if refinancing make sense for them.
pointing to a housing market still struggling to regain its footing.

Mortgage Rates Dip to 2011 Lows

Great rates have arrived for 2011. Both the 30 yr and 15 yr mortgage rates are at 2011 lows. Borrowers and homeowners should take advantage while of these savings while they can.

The 30 yr mortgage rate dropped to 4.61% from 4.63% while the 15 yr fixed rate feel from 3.82% to 3.8%. There is not much more room for rates to continuously drop and don't expect these rates to stay low for ever.

Speak with a mortgage professional to see if refinancing make sense for you.

Rates Continue to Rise

Rates on both 15 year and 30 year mortgages increased to their highest levels for the past six months. The average rate for a 30 year fixed mortgage climbed to 4.84% from 4.66%. Rates for the average 15 year mortgage similarly rose to 4.21% from 3.98%.

Although rates continue to climb, they are still very low compared to historic numbers. Homeowners and and potential buyers would still receive good rates compared to rates 15 years ago. You should speak with your mortgage professional to see if refinancing or obtaining a mortgage makes financial sense for your particular situation.

Mortgage Rates Rise to 5 Month High

Fueled by a treasury bond sell off, mortgage rates climbed to a 5 month high this pas week. Rates move increased to 4.61% from 4.46% on a 30 yr fixed mortgage. Although rates are at a 5 month high, they are still low compared to historic numbers. Many borrowers can still save hundreds of dollars refinancing. Potential home buyers can still lock in a low 30 year fixed mortgage and save thousands of dollars in interest. Contact your mortgage professional to see what makes sense for you.

Mortgage Applications Fall

Overall, mortgage applications fell last week. Refinance applications were down while purchase applications slightly edged up.

Refinance applications dipped 1.4%. This is the 4th week in a row that refinance applications have decreased. Purchase applications increased 1.8%. The overall decrease for mortgage applications was .09%.

Mortgage rates have increase which tends to reduce the amount of mortgage applications. However, it is interesting that purchase applications have a positive trend. Investors are putting more money into safer investment options such as treasuries lowering the yield. Mortgage rates tend to treasuries which is why we're seeing an upward trend in mortgage rates.

Experts expect rates to continue a gradual climb over the next year. If refinancing makes sense for you, you should take advantage as soon possible.

Mortgage Rates Rise

The 30 year fixed mortgage rate mortgage climbed to an average 4.39% from 4.17% last week. These November 18th increase potentially signals that rates have bottomed out and are on their way up. Borrowers that have not refinanced should consider speaking with their mortgage professional to see if there is any benefit to refinance.

Jumbo Mortgage Loans on the Rise

Many companies are posting large year over year increases with jumbo mortgage loans. During the past couple of years, many banks and mortgage companies tightened up their guide lines for jumbo mortgage applicants making it more difficult for borrowers to obtain financing for more expensive homes.

Jumbo loans generally consist of loans greater than $417,000. However, in some high cost areas, jumbo loans can exceed $729,750. Because these loans tend to be larger loan amounts than conventional and FHA loans lenders and government entities typically find them to be more risky. During the real estate crisis many banks tried to mitigate their risk by using more stringent guide lines and cutting back on lending for jumbo loans.

However, in recent months, a increase in jumbo loan fundings maybe a key indicator on market conditions. Some major banks have reported large increases with their jumbo loan lending such as a major bank stating that they have a 146% increase over the past 6 months of this year versus the same time period last year.

Even though jumbo mortgages have increased this year, guidelines still tend to be tighter than before. High loan borrowers maybe attracted to the record low jumbo interest rates that are available helping fuel these increases. Whatever the reason for these increases, jumbo mortgage borrowers should consult their mortgage professional to see if refinancing is a beneficial for their specific situation.