December 30, 2014: “Tips to Get the Best Jumbo Rates”, a Wall Street Journal Jumbo Jungle feature by Anya Martin with some advice provided by Keith Gumbinger, HSH.com’s vice president:
Consider an ARM. With interest rates so low, many borrowers may be tempted just to apply for a 30-year fixed rate mortgage. But rates can be as much as a quarter to half a percentage point lower for a 10-year, adjustable-rate mortgage.
According to mortgage website HSH.com, average jumbo rates on a 30-year, fixed-rate loan rates were 4.06%, while rates on a five-year ARM were 3.08% for the week ending Dec. 26.
Leverage existing relationships. Many banks offer relationship discounts to customers who already have substantial accounts, Mr. Schleck says. For example, Bank of America has a rewards program that offers closing cost savings. Wealthy borrowers may find even more flexibility by applying for a jumbo mortgage through a bank’s private banking arm, says Keith Gumbinger, vice president of HSH.com, a real-estate financing website.
Still, shop around. Because lenders in today’s environment typically hold jumbo mortgages within their portfolios, they have more flexibility in setting rates as well as how they qualify borrowers, Mr. Gumbinger says. “Scour the market, as the savings can be appreciable.”
December 28, 2014: “Housing 2015: The return of first-time home buyers”, a CNNMoney column by Les Christie included a long-range outlook for mortgage rates provided by Keith Gumbinger, HSH.com’s vice president:
In December, the Federal Reserve signaled that it would not raise the Federal Funds rate until the summer of 2015 or perhaps even later.
Keith Gumbinger of HSH.com, a mortgage information provider, expects mortgage rates to peak next year at about 4.75% for a 30-year fixed rate mortgage. He doesn’t see rates rising much beyond 5%, which would still be “very favorable rate, historically.”
December 25, 2014: “How Cheaper Oil Affects Mortgage Rates”, a New York Times review of conditions affecting mortgage rates by Lisa Prevost featured extended commentary and analysis by HSH.com vice president Keith Gumbinger:
In general, interest rates tend to be very sensitive to inflation. Because cheaper oil lowers costs throughout the American economy, inflation is pulled downward as well, said Keith Gumbinger, the vice president of HSH.com, a financial publisher. In turn, lower inflation can allow for interest rates in general to decline.
That effect has been exacerbated of late by global investors’ concerns about the ailing economies in oil-producing countries, especially Russia. If low oil prices are a boon for consuming nations, they can be detrimental to the economies of producing nations, Mr. Gumbinger said.
“Markets that would normally be pumping oil and getting dollars will get far fewer dollars – and the prospects for those countries are lower,” he said.
December 23, 2014: “What to Expect From Mortgage Rates in 2015, a forward-looking piece on TheStreet.com by Sean Williams included a synopsis of mortgage rates pulled from HSH.com VP Keith Gumbinger’s 2015 Outlook:
“HSH.com recently issued its annual mortgage outlook, and it anticipates that mortgage rates will “firm somewhat” in 2015. HSH’s opinion on mortgage rates in 2015 is based on a number of scenarios. On one hand, HSH believes the Federal Reserve will begin raising short-term interest rates by midyear, pushing mortgage rates higher. Conversely, a strengthening U.S. economy is projected to attract foreign investments. These cash inflows have been critical in stabilizing long-term lending rates near record lows.”
December 19, 2014: “Buying or Selling a Home in 2015? Here’s What You Need to Know”, a Money.com forecast article by Carla Fried, included a home equity outlook by Keith Gumbinger, HSH.com’s VP:
Owners, renovate. Especially if you have a low-rate mortgage, “it can be a lot cheaper to remodel to age in place than move,” says Kermit Baker, director of the Remodeling Futures Program at Harvard’s Joint Center for Housing Studies. Rates on home-equity loans and lines of credit are still “in shouting distance of record lows,” says Keith Gumbinger of mortgage data service HSH.com. While loans are pricier than HELOCs – possibly 6.5% vs. 5.5% by year’s end -the fixed-rate HEL can be a safer bet in a rising rate climate.
December 18, 2014: “Mortgage rates hit a new low for the year”, a Money.com syndicated column by Les Christie included a review of the reasons for falling mortgage rates from HSH.com vice president Keith Gumbinger:
Plunging oil prices, due to a slowdown in Russia and other global economies, have been sending investors into safe havens like U.S. Treasuries, said Keith Gumbinger, vice president of mortgage information firm, HSH.com.
“This is again driving down yields and pulling mortgage rates right along with them,” he said.
December 18, 2014: “New down-payment considerations for 1st-time buyers”, a Chicago Tribune feature by Carolyn Bigda included a characterization of the impact of 3 percent down mortgages from Keith Gumbinger, HSH.com’s VP:
All of which means to say that although some mortgages will require a lower down payment, first-time buyers still face several other hurdles to owning a home.
“The loans may expand opportunities at the margin, but I don’t think they will have a massive impact on the marketplace,” said Keith Gumbinger, vice president of HSH.com, which keeps tabs on home lending trends.
December 18, 2014: “Mortgage Rates Expected To Rise Next Year”, a Los Angeles Daily News outlook item by Gregory Wilcox that include research and commentary from HSH.com vp Keith Gumbinger:
And rates, while expected to go up, should stay low well into next year, which would bode well for housing markets across the nation next spring, said Keith Gumbinger, vice president of HSH.com, a Riverdale, New Jersey-based rate tracker and publisher of mortgage and consumer loan information.
Rates could even drop early in the year if the central banks overseas act to prop up softening economies.
“Steps by those banks to lower rates pushes in dollars [to the U.S.] about as fast as it can and pulls mortgage rates down with it,” Gumbinger said.
While the forecast calls for rates to increase, it won’t be by much. In the latest weekly rate survey HSH had the 30-year-fixed mortgage averaging 3.96 percent. The peak this year was 4.64 percent the first week of January.
Rising rates are not necessarily a bad thing, either.
“It’s all kind of good news,” he said. “If rates firm up that could come on the continuation of a growing economy. But we’re projecting they don’t get much higher than this year’s peak, which you could rank among the best of many decades.”
December 3, 2014: “FHA faces more pressure to reduce borrowers’ annual fees”, a NorthJersey.com/Bergen Record article on mortgage insurance costs by Kathleen Lynn included some expertise from HSH.com vice president Keith Gumbinger:
In exchange for the insurance premiums, FHA mortgages offer a few advantages that make them especially attractive to low- and moderate-income buyers.
They allow down payments as low as 3.5 percent and credit scores significantly lower than those required by other lenders. In addition, their interest rates are generally 0.25 percent lower than conventional mortgages, according to Keith Gumbinger, vice president of HSH.com, a mortgage information publisher based in Riverdale.
But one drawback with an FHA loan is that the insurance premium must be paid for the life of the loan; private mortgage insurance ends when a buyer builds up some equity in the property.
Gumbinger predicted that the FHA might trim the fees, though not all the way back to 2010 levels.
The issue, he said, shows that “yesterday’s troubles are still affecting marketplaces today, and probably into the future.”
December 2, 2014: “Consumers Get Break In New Credit Score System”, a press release by United Credit Consultants included a brief analysis by HSH.com VP Keith Gumbinger in the impact of changes to certain credit scoring models:
“It really only will affect a sub-segment of a sub-segment of the market,” said Keith Gumbinger, a national mortgage expert at HSH.com. “But to the extent that it does boost scores, it could help some people.” Mortgage applicants with a ding on their credit score typically are charged higher rates by lenders. For example, Gumbinger said a borrower with a 679 FICO score and a 10 percent down payment could be charged a 2.25 percent fee to access today’s best rates, which now stand about 4.125 percent. But because that fee might be hard for the borrower to cover out of pocket, many will instead choose to incorporate the fee into the interest rate, raising it to 4.625 percent in Gumbinger’s example.
November 26, 2014: “Average 30-year mortgage rate slips to 3.97%”, a Los Angeles Times market update by E. Scott Reckard included an outlook for mortgage shoppers from Keith Gumbinger, HSH.com’s vice president:
Fears that the improving economy would drive rates higher were tempered by expectations of slower expansion this quarter and by sluggish growth in other major countries, said Keith Gumbinger, vice president of HSH.com, which also tracks rates.
“Moderate economic growth in the U.S., minimal inflation and few profitable places for investors to park their funds are all helping American mortgage borrowers obtain fantastic rates,” he said.
November 20, 2014: “Should You Refinance Into a Bigger Mortgage?”, a Wall Street Journal story on cash-out refinances by AnnaMaria Andriotis includes some mortgage rates and commentary provided by HSH.com VP Keith Gumbinger:
Other uses for the money can also be tempting. Using the cash to pay off credit-card debt or other debt can lead to savings, because the interest rate on the new mortgage will likely be lower. The average rate on a 30-year fixed-rate mortgage, for example, was 4.1% for the week ended Nov. 14, according to mortgage-information website HSH.com. Credit cards had an average interest rate of 11.82% as of August, according to the latest data from the Federal Reserve.
Don’t forget closing costs, which are typically 2% of the loan amount on a refinancing, says Keith Gumbinger, a vice president at HSH.com. Homeowners who refinance into a $400,000 loan, including a cash withdrawal of $40,000, could in effect pay $8,000 for that privilege.
Consider taking out a Heloc or a home-equity loan, instead. The interest rates on these loans are typically higher. But because the amount borrowed tends to be smaller, borrowers typically pay less in interest charges than they would on a mortgage, says Mr. Gumbinger.
November 11, 2014: “How to find the best low down-payment deal”, a syndicated Real Estate Matters column by Ilyce R. Glink and Samuel J. Tamkin that points consumers to HSH.com’s valuable resources:
Finally, make a spreadsheet to help you compare what each lender is offering. HSH.com, a mortgage information publisher, has some excellent calculators that can help with this comparison, especially with detailing which fees each lender is adding onto the loan.
November 7, 2014: “Sandy victims fear another financial blow if tax rule isn’t reinstated”, an NJ.com/Star-Ledger discussion of short-sale tax implications by Erin O’Neill included a comment and example provided by Keith Gumbinger, HSH.com vice president:
Keith Gumbinger, vice president of Riverdale-based mortgage research firm HSH.com, said “the forgiveness is treated directly as income.” So, if a homeowner who falls into the 28 percent tax bracket gets $50,000 in debt forgiveness, they’d be on the hook for roughly $14,000 in taxes.
“Congratulations,” Gumbinger said, “you got gifted $50,000 for which you received absolutely nothing.”
And then you owe taxes on it.
October 24, 2014: “Mortgage Rates Tumble”, a Wall Street Journal mortgage market update by AnnaMaria Andriotis included data provided by HSH.com:
Interest rates on mortgages are tumbling again, defying experts who have long predicted a sustained rise and offering borrowers a fresh opportunity to save money.
The average rate on a fixed-rate 30-year mortgage fell to 4.03% in the week ended Oct. 17—the lowest level since June 2013—and remained there through Thursday, according to mortgage-information website HSH.com. Rates have hovered around that level in the intervening days, HSH.com says.
October 23, 2014: “Mortgage Rates Tumble”, a Wall Street Journal discussion of mortgage rate trends by AnnaMaria Andriotis featured advice and calculations provided by HSH.com VP Keith Gumbinger, including how to determine if it’s time to refinance.
“Once you find an interest rate that looks appealing, figure out how much you will pay a month and whether that amount is manageable. Homeowners who want to refinance should look for a new interest rate that is at least one percentage point lower than their current rate,” says Keith Gumbinger, a vice president at HSH.com
October 23, 2014: “U.S. Mortgage Rates Fall With 30-Year at 3.92%”, a Businessweek.com market update by Prashant Gopal that featured a characterization of who might benefit from a fast drop in mortgage rates from HSH.com vice president Keith Gumbinger:
“The dip in rates here are for people who were looking at the numbers throughout the summer and saying, ‘It’s pretty close,’” Keith Gumbinger, vice president of HSH.com, a Riverdale, New Jersey-based mortgage-data company, said in a telephone interview. “And now you have a place where that refinance might make sense.”
October 23, 2014: “Refinancing your mortgage? Opportunity knocks”, a syndicated Money.com article by Les Christie included HSH.com vice president Keith Gumbinger’s admonishment to homeowners looking for a new low-rate mortgage:
“For borrowers hoping to pull the trigger on a refinance, this spate of the lowest mortgage rates since June 2013 is a pretty good opportunity,” said Keith Gumbinger of HSH.com, a mortgage information company.
October 22, 2014: “It Could Soon Be Easier to Get a Mortgage”, a Money.com update on mortgage lending conditions by Amanda Gengler included commentary from Keith Gumbinger, HSH.com’s vice president:
“This clarification might allow lenders to look at riskier borrowers with less fear of having to buy these loans back in the future,” he said. He noted, though, that any changes are likely to be incremental: “It might let a few more borrowers in at the margin, but it won’t be like flipping a light switch where FICO scores down to 640 are now in.”
October 22, 2014: "3 ways to protect your wallet from rising interest rates”, a MSN.com Money item from Vera Gibbons which contained some mortgage advice from HSH.com VP Keith Gumbinger:
“Keeping the ARM is arguably a 1 to 3 year time window, where refinancing to a 7/1 is arguably a 5 to 8 year time window, and refinancing to a 30-year or 15-year fixed rate mortgage is a 10-plus year outlook.”
October 17, 2014: “Best response to the market swoon? Refinance”, a CBS News column by Kathy Kristof discussing with HSH.com vp Keith Gumbinger if present market conditions warrant a refinance consideration:
“If you bought a home six months ago — or were unable to get the best rate because you didn’t have enough equity or your credit rating wasn’t perfect — you have another opportunity to get your loan down to historically low rates,” says Gumbinger.
October 16, 2014: “Financing Manufactured Homes”, a New York Times story by Lisa Prevost included a comparison of rates provided by HSH.com:
The Consumer Financial Protection Bureau estimated the typical interest rate for a manufactured home loan in 2012 at 6.79 percent. By contrast, the average 30-year fixed rate on a conventional mortgage that year was 3.6 to 4.2 percent, according to HSH.com, a publisher of loan information.
October 16, 2014: “Home Equity Borrowing Rises As Home Values Climb”, a PRWeb.com Newswire press release from Federal Savings Bank that included some context about home equity borrowing:
“There are various reasons a homeowner could use a HELOC. Keith Gumbinger, vice president of mortgage data firm HSH.com, said one of the driving factors behind more HELOC borrowing in 2015 will be remodeling, Bloomberg reported. Renovation is the most common reason, and some homeowners leverage their equity to consolidate other debts.”
October 16, 2014: “If You Still Haven’t Refinanced, Now’s a Good Time (Again)”, a Money.com article by Amanda Gengler discussing with HSH.com vp Keith Gumbinger the conditions under which certain homeowners might be able to take advantage of falling mortgage rates:
“Some people over the last six months may have had things align so they can qualify,” says Keith Gumbinger, vice president of HSH.com. “For example, previously you may have had a credit score below 740, the minimum threshold often required for the best rates. Or you didn’t have enough equity in your home; most lenders require a stake of at least 10% to 20%.”
October 16, 2014: “Banks Make It Easier to Score a Home Loan”, a Wall Street Journal Jumbo Jungle feature by Anya Martin discussing easing credit standard for the best-qualified mortgage borrowers:
“Today a borrower may be able to get a jumbo loan with a FICO score as low as 680 out of a possible 850, though many lenders say they draw the line at anything below 720. The best terms go to borrowers with scores of 760 and above,” says Keith Gumbinger, vice president of HSH.com, which tracks mortgage rates.
October 15, 2014: “Mortgage rates hit 16-month low”, a St. Louis Post-Dispatch personal finance column by Jim Gallagher that included quotes about economic conditions from HSH.com vp Keith Gumbinger:
“Although the U.S. economy is doing pretty well, that’s increasingly not the case for other economies,” said Keith Gumbinger, vice president of HSH.com. “Fresh concern about the pace of growth in the Euro zone and other developed markets continues to give investors the jitters. As a result, they continue to plow money into the relative safety of U.S.-based investments.”
October 10, 2014: “Home Equity Lending Surges it U.S. to Five Year High”, a Bloomberg article by Alexis Leondis and Kathleen Howley article thet included some background and commentary provided by Keith Gumbinger, HSH.com’s vice president:
“Helocs typically are held by banks in their mortgage portfolios rather than being sold to Fannie Mae or Freddie Mac and securitized. Lenders use Helocs as a hedge against rising rates because they increase in tandem with bank borrowing costs,” said Keith Gumbinger, vice president of HSH.com, a mortgage data firm in Riverdale, New Jersey.
Homeowners will boost demand for Helocs into next year as they remodel their properties rather than move or pay off credit card and student loan debt, said Gumbinger of HSH.com.
“We’re arguably still in the early stages of an up cycle for home equity borrowing,” he said.
October 9, 2014: “Mortgage Rates Fall As Investors Seek Safe Havens”, an Investors Business Daily market update from Bloomberg news
“Gloomier news in the world has turned into the American buyer’s best friend,” said Keith Gumbinger, vice president of HSH.com, a Riverdale, N.J.-based mortgage-data firm. “That’s one of the reasons why mortgage rates aren’t getting any upward traction.”
October 9, 2014: “U.S. Mortgage Rates Fall To Lowest In A Month”, a BusinessWeek article by Prashant Gopal with a quote from HSH.com vp Keith Gumbinger:
“Gloomier news in the world has turned into the American buyer’s best friend,” said Keith Gumbinger, vice president of HSH.com, a Riverdale, New Jersey-based mortgage-data firm. “That’s one of the reasons why mortgage rates aren’t getting any upward traction.”
October 9, 2014: “Why Banks Will Beat Mortgage Firms in Home-Equity Growth”, a National Mortgage News market analysis by Brad Finkelstein included a range of content and expertise provided by HSH.com vice president Keith Gumbinger, including:
“It is not to say that an independent mortgage banker couldn’t hook up an arrangement with a depository to sell whole-loan production. But in this market, at this point in time, with regulations being what they are, any kind of third-party originated stuff is going to be a tough sell,” he stated. Third-party originations, especially second-lien loans, were identified as one of the causes of the downturn.
October 7, 2014: “5 things to consider before tapping your home for cash”, a Money.com article by Les Christie discussing with HSH.com vice president Keith Gumbinger how to get cash from your home:
“We may be in for a more volatile period,” said Keith Gumbinger, of HSH.com, a mortgage information firm. Coming to an end next month are several of the Federal Reserve’s efforts to keep rates low under its quantitative easing monetary policy, he noted. So if you are one of the borrowers who locked in an ultra-low rate in the past few years, a home equity loan or HELOC could save you more money than refinancing the entire mortgage through a cash-out refinance.
October 3, 2014: “As Ben Bernanke Knows, Low Rates Don’t Mean Easy Mortgages”, a Time.com article by Pat Regnier discussing with HSH.com vp Keith Gumbinger how even well-qualified borrowers can have trouble getting a mortgage:
“For a lot of borrowers, rock-bottom interest rates are an attractive nuisance – they can’t get through all the hurdles to get them,” says Keith Gumbinger of HSH.com, which tracks data on mortgages. Access to the most affordable mortgages, says Gumbinger, currently starts at a relatively high credit score of 740. In the loosest environment, back when the bubble was blowing up, that number was 680.
Gumbinger says today’s standards should be seen in a longer historical perspective. Though they are much tighter than they were during the boom, they aren’t so different from standards seen in the 1980s and mid-1990s.
October 1, 2014: “Should you tap your 401(k) to buy a house?”, a syndicated Reuters “Stern Advice” column by Linda Stern, considering whether leveraging other financing assets to buy a home is a good idea or not included a discussion with HSH.com vp Keith Gumbinger:
A family with excellent credit putting $20,000 down on a $400,000 home would be expected to pay an extra $184 a month for that insurance, reports HSH.com, a mortgage research firm. “You’ve got to go through all those calculations to see what works best for you,” said Keith Gumbinger, a spokesman for HSH.com
September 22, 2014: “How to Play the Real-Estate Market”, a Wall Street Journal article by Gregory Zuckerman which features a quote from HSH.com VP Keith Gumbinger regarding mortgage rates:
The average rate for conforming 30-year fixed-rate mortgages recently was 4.19%, close to the lowest levels of the year, says HSH.com, which collects mortgage data. Keith Gumbinger, vice president of HSH.com, says, “Price gains have cooled in many areas, and mortgage rates are lower than they were expected to be this year. The combination is a favorable one, and if it holds, it should provide a solid foundation for home sales this fall.”
September 12, 2014: “Mortgage rates were supposed to rise this year. Here’s why they didn’t”, a Washington Post article by Dina ElBoghdady featuring HSH.com VP Keith Gumbinger speaking on mortgage rates:
“With the Fed moving away, it was feared that the private market would not have the capacity to step up and buy the securities,” which totaled about $1.5 trillion that year, said Keith Gumbinger, a vice president at the mortgage research firm HSH.com.
As it turned out, however, the supply did not overwhelm demand because the higher interest rates discouraged people from refinancing or buying homes, and the volume of mortgage backed securities dwindled, Gumbinger said. In the meantime, the economy improved. The Fed began scaling back its purchases in January, and economists began predicting that rates would rise further.
September 4, 2014: “Freddie Mac: Mortgage rates hold at year’s low; 30-year average at 4.1%”, a Los Angeles Times article by E. Scott Reckard on mortgage rates, with a feature of HSH.com VP Keith Gumbinger:
Despite the remarkably cheap home financing, recent home sales have been lackluster, “and there doesn’t seem to be much forward momentum,” said Keith Gumbinger, vice president of rate tracker HSH.com.Still, it’s difficult for many people to qualify for loans, he said.
The National Assn. of Realtors said sales of previously owned homes managed a 2.4% increase in July. However, Gumbinger pointed out, those sales reflect demand from as long as 60 days ago because they are recorded at the time the loan closes and the deed changes hands.
September 3, 2014: “Is It Finally Time to Refinance?”, a Wall Street Journal article by Anya Martin discussing jumbo rate mortgages and refinancing, which includes input from HSH.com VP Keith Gumbinger:
Jumbo borrowers who plan to move within the next five years may also save by switching from a 30-year fixed-rate loan to a
five-year ARM, says Keith Gumbinger, vice president at HSH. Average jumbo 5-1 ARM rates were as low as 2.97% for the week ending Aug. 22, but crept up slightly to 3.02% for the week ending Aug. 29, according to HSH.
August 29, 2014: “Housing Stumbling in Slowest Season for U.S.: Mortgages”, a Bloomberg article by Prashant Gopal about the housing market that features a quote from HSH.com VP Keith Gumbinger:
“There’s only so much low mortgage rates can do,” said Keith Gumbinger, vice president of HSH.com, a Riverdale, New Jersey-based mortgage data firm. “Low mortgage rates are helpful. They’re attractive. But in their own way they’ve helped to foster higher home prices which have pushed additional folks to the sidelines.”
August 21, 2014: “LA-OC housing market is least affordable in US, Zillow says”, a Los Angeles Times by Tim Logan on LA housing market, that includes comments from HSH.com VP Keith Gumbinger:
In the long run, that’s a healthy thing, said Keith Gumbinger, vice president of mortgage-tracking firm HSH.com. Price growth based on market fundamentals is a lot more sustainable than growth generated by market swings. Still, he said, it’ll take awhile to work out the damage of the last few years.
“We’re falling back to typical dynamics, and that should be healthier overall,” he said. “But income growth, wage growth, has been pretty weak. They’ve got a ways to catch up.”
August 17, 2014: “Beware the shortcomings of data on home prices and mortgage rates”, a Los Angeles Times article by Lew Sichelman on mortgage rates that showcases HSH data and VP Keith Gumbinger:
HSH, the New Jersey mortgage information firm, says its weekly average results from a survey of 600 “active” lenders who are in the market and able to make loans directly to consumers. Here, the survey asks lenders about their pricing for 80% loan-to-value mortgages to someone with a 740 FICO score or better.
This is the “stuff of normal humans,” according to the company’s Keith Gumbinger. But again, do you fit that bill? If not, you can expect to pay more than what’s reported in the media. At the same time, because Freddie Mac’s and HSH’s numbers are averages, you might be able to find lower rates.
August 14, 2014: “What Happens if Millennials Never Enter the Housing Market?”, a Fox Business article by Kathryn Buschman Vasel on Millennials in the housing market, with a quote from HSH.com VP Keith Gumbinger:
“The big question mark is how long they put off entering the market,” says Keith Gumbinger, vice president of HSH.com. “If these first-timers don’t come in, that means the train can’t get underway. No one can sell and move up and on, the demand home prices rely on goes away and rents will continue to rise.”
August 11, 2014: “How to Find a Mortgage When Your Credit is Bad”, a Money article by Kerri Anne Renzulli on improving your credit score, featuring HSH.com VP Keith Gumbinger:
Fixing errors in your credit report can give you the most immediate score boost. Request a copy of all three of your credit reports from each credit agency for free from annualcreditreport.com. “You need to be very proactive and check your reports and make sure anything that is incorrect is cleared,” says Keith Gumbinger, vice president of HSH.com, a website that tracks the mortgage and consumer loan industry.
August 7, 2014: “How to Find a Mortgage When Your Credit is Bad”, a Money article in the Ask the Expert section features a response from HSH.com VP Keith Gumbinger:
“The bad news is you really do need a good score to get a home loan today,” says Keith Gumbinger, vice president of HSH.com, a website that tracks the mortgage and consumer loan industry.
August 6, 2014: “Getting a Mortgage Is Growing Easier”, a Money/Time article by Jacob Davidson on credit availability for home-loans, featuring HSH.com VP Keith Gumbinger:
Keith Gumbinger, vice president at mortgage research firm HSH, says that while loans can still be difficult for some consumers to get, banks are approving borrowers with slightly lower credit scores. Previously, Gumbinger says, banks required a FICO score of about 640 to approve a loan backed by the Federal Housing Administration, called an FHA loan. Now applicants with scores as low as 600 are getting the green light.
July 24, 2014: “Taking advantage of low ‘floating’ rates for adjustable rate mortgages”, a MarketWatch article by Daniel Goldstein covering adjustable rate mortgages, which includes HSH.com VP Keith Gumbinger:
Keith Gumbinger, vice president of HSH.com, a Riverdale, N.J., company that tracks mortgage rates, expects mortgage rates to stay low for the next year, with just a quarter-point increase before 2015. “Our economy is only growing modestly, so bad news, economic or geopolitical, is good for mortgage rates,” he says.
July 21, 2014: “This is the worst thing about getting a mortgage”, a MarketWatch article by Amy Hoak on the home loan process, that includes HSH.com VP Keith Gumbinger:
Also think about how long you plan on staying in the home, as well as your tolerance for risk—both of which will help you determine whether to even consider adjustable-rate mortgages, Gumbinger said. By knowing the type of mortgage you want—before even talking with a mortgage banker—you won’t have to sit through pitches that don’t apply to you.
“You could lose your mind in conflicting advice,” Gumbinger said, so before talking with someone, know where you stand financially and the type of mortgage that interests you.
July 17, 2014: “With jumbo mortgages, borrowers in no rush to change", a MarketWatch article by Daniel Goldstein on jumbo mortgages, showcasing a quote from HSH.com VP Keith Gumbinger:
Qualifying for a jumbo refinance may still be difficult for less-qualified borrowers. Some borrowers who might have easily obtained loans in years past find themselves out of step with today’s stricter underwriting standards, said Keith Gumbinger, vice president of HSH.com, a Riverdale, N.J.-based company that tracks mortgage rates.
July 17, 2014: “What’s Really Holding Back the Housing Recovery”, a Fox Business article by Kathryn Buschman Vasel on the housing recovery, with a quote from HSH.com VP Keith Gumbinger:
“Nothing in this recovery is going straight up with consistency, it’s about fits and starts,” says Keith Gumbinger, vice president of real estate website HSH.com. “The market is still doing better than last year, but just not quite as good as we are used to.”
July 14, 2014: “How to get thousands of dollars in mortgage relief from Citigroup”, a Marketwatch article by Catey Hill and Amy Hoak on mortgage relief that features HSH.com VP Keith Gumbinger:
While down payment or closing cost assistance might also be offered, it’s likely that Citi will “look to help troubled existing clients in their portfolio first,” Gumbinger said. Those that do get down payment and closing cost assistance will likely be borrowers in some of the areas hardest hit by the mortgage crisis, those who lost homes to foreclosure and short sale and first-time, low-to-moderate income borrowers, according to the Department of Justice.
July 12, 2014: “How Mom and Dad can help first-time home buyers”, a San Francisco Chronicle article by Kathleen Pender on first-time home-buying assistance, featuring a quote from HSH.com VP Keith Gumbinger:
Parents are not allowed to tell the bank they are providing money to a child for a down payment as a gift, while expecting the child to repay it. “Lying or misleading a lender into making a mortgage loan is fraud,” says Keith Gumbinger, a vice president with HSH Associates. “That’s a felony charge.”
July 10, 2014: “Scant Interest in F.H.A. Program”, a New York Times article by Lisa Prevost on the F.H.A. short refinance program, which contains a quote from HSH.com VP Keith Gumbinger:
Asking lenders and investors to voluntarily take a substantial loss now, “in hopes of not losing some money tomorrow,” is a hard sell, said Keith T. Gumbinger, the vice president of HSH.com, a publisher of loan information.
July 10, 2014: “U.S. Mortgage Rates Increase as Job Market Improves”, a Bloomberg article by Prashant Gopal on mortgage rates, with a quote from HSH.com VP Keith Gumbinger:
“The employment report was definitely good,” Keith Gumbinger, vice president of HSH.com, a Riverdale, New Jersey-based mortgage-data firm, said yesterday in a telephone interview. While solid economic news should be pushing mortgage costs even higher, the Federal Reserve “is still buying mortgage-backed securities and treasuries, both intended to keep rates low.”
July 8, 2014: “Adjustable Rate Mortgages Are A Wise Choice for Borrowers”, a MainStreet article by Jeff Brown on ARM’s, that features HSH.com VP Keith Gumbinger:
“While it seems we have made our way out of the turbulent times that have bounced the market around for the last few years, there is still plenty of uncertainty ahead,” says Keith Gumbinger, vice president of HSH.com, the mortgage and housing research company.
In his midyear analysis, Gumbinger says rates on 30-year fixed mortgages could edge up to 5% or 5.25% by the end of the year, from today’s 4.233%. With the economy improving, the Federal Reserve will continue to wind down efforts to keep long-term interest rates down, Gumbinger says. A 5% rate would still be low by historical standards.
June 20, 2014: “4 Smart Steps to Take Before Buying Your First Home”, a Kiplinger article by Andrea Browne on home-buying finance, featuring HSH.com VP Keith Gumbinger:
Don’t buy a home where you live now, just for the sake of homeownership. For many twenty- and thirtysomethings still exploring their career paths, buying a home can really limit their freedom. If you’re serious about becoming a homeowner, make sure the city you decide to buy in is a place you won’t mind sticking around for a while. Experts often advise would-be buyers to plan on staying in a new home no fewer than five to seven years. “You’re going to spend thousands of dollars to get into the home. To get out of it is going to be equally expensive and may possibly cost more when you do it in less than five years or in a down market,” says Keith Gumbinger, vice-president of HSH.com, a publisher of mortgage information and rates.
June 12, 2014: “U.S. Mortgage Rates Rise for a Second Week”, a Bloomberg article by Prashant Gopal on mortgage rates featuring a quote from HSH.com VP Keith Gumbinger:
“Mortgage rates have confounded expectations by falling in the face of a strengthening economy this spring,” Keith Gumbinger, vice president of HSH.com, a Riverdale, New Jersey-based mortgage-data firm, said yesterday in a telephone interview. “But now it would seem that interest rates are behaving a little more normally.”
June 6, 2014: “Are Adjustable-Rate Mortgages Right for You?”, an AARP article by Lynnette Khalfani-Cox on ARMs, featuring HSH.com VP Keith Gumbinger:
“With an ARM, you might free up many hundreds of dollars per month,” says Keith Gumbinger, vice president at HSH.com, a mortgage information website. “That money could be put into your 401(k) or even stuffed back into your house, letting you lower your mortgage balance and build equity.”
“But the problem with ARMs,” says Gumbinger, a veteran mortgage pro with more than 30 years in the industry, “is that they’re not without risk.”
June 5, 2014: “Freddie Mac: Fixed mortgage rates edge higher; 30-year averaging 4.14%”, a Los Angeles Times article by E. Scott Reckard on mortgage rates featuring HSH.com’s Tim Manni:
Fixed mortgage rates held fairly steady until Tuesday, when they jumped by about a tenth of a percentage point before falling back on Wednesday, said Tim Manni, managing editor at HSH.com, which tracks trends in the market.
June 5, 2014: “Depuzzling the confusion of America’s housing recovery”, a Fortune article by Jean Chatzky on the housing recovery featuring a quote from HSH.com’s Tim Manni:
The average rate on the 30-year fell to 4.12% this week according to Fannie Mae, the average on the 15-year to 3.25%. This is one-third of a point lower than the highs hit late last summer, but also about a point higher than the lows of recent years. “This is confounding expectations,” says Tim Manni of HSH.com, the mortgage information website. Rates tend to fall when data is released showing that the economy is slowing–and rise when we get reports that it’s improving. They’re not. Consumer confidence is up according to The Conference Board. Durable goods orders are rising. And, according to a recent Gallup Survey, the amount consumers are spending on a daily basis–at $98–a six-year high and $10 over the April average.
June 2, 2014: “Fear of Rejection is Keeping Homebuyers on Sidelines”, a Fox Business article by Kathryn Buschman Vasel on the obstacles of getting a mortgage, featuring a quote from HSH.com VP Keith Gumbinger:
“One cannot overestimate the need for first-time buyers in this market,” says Keith Gumbinger, vice president of housing website HSH.com. “Nothing moves without the first-time buyer, if no one buys the bottom-rung properties those people can’t move up and so on and so forth. It’s preventing the market from moving forward.”
May 30, 2014: “Sale pending: a lost generation in home buying”, a MarketWatch piece by David Weidner on the difficulty in homebuying, featuring HSH.com:
It’s easy to see why this generosity is generating excitement. San Francisco is, of course, among the most expensive cities in the U.S. and its housing the most unaffordable, according to mortgage broker HSH Associates. Income inequality, fueled by the booming tech industry, has made living in the Bay Area an exclusive proposition. Controversial, too.
May 30, 2014: “What you must earn to buy a home in 27 cities this summer”, a MSN Real Estate syndicated piece of our Salary Needed to Own a Home study.
May 29, 2014: “Open House Disasters to Avoid”, a Boston.com article by Scott Van Voorhis covering our piece on home seller mistakes in an open house:
I took a look for HSH.com at some of the biggest mistakes sellers should be on guard against when opening up their homes to hopefully eager but reliably critical buyers.
The pros out there definitely have their pet peeves and it’s worth your while to leverage their experience rather than learning the hard way, by trial and error. After all, your home will only be new to the market once – recycled listings aren’t hard to spot.
May 29, 2014: “US regions where buying a house is most and least affordable”, a Washington Post article by Dion Haynes covering our Salary Needed to Own a Home study:
To buy a median-priced home in this region, you’ll need to earn about $80,000 a year, according to a new study by online mortgage firm HSH.com. A buyer seeking to purchase a median-priced home of $358,900, according to the study, would have to earn $78,503.56. With a 4.45 percent 30-year fixed-rate mortgage, you’d pay about $1,831.75 a month, according to the study.
May 29, 2014: “Borrowers Tap Their Homes at a Hot Clip”, a Wall Street Journal article by Joe Light on home equity line of credits that features a quote from HSH.com VP Keith Gumbinger:
This time, lenders seem to be offering Helocs only to borrowers with good credit in locations where home values have risen, said Keith Gumbinger, vice president of mortgage-information site HSH.com. During the boom, homeowners could borrow up to 100% of their home’s value, said Mr. Gumbinger. Now it is most common to see a maximum of 80% and sometimes 85%, he said.
“Relative to where they were, lenders are still very conservative,” said Mr. Gumbinger. “Will the excesses of yesterday return? Only time will tell.”
May 25, 2014: “First-time buyers in NYC need $97K up front”, a New York Post article by Gregory Bresiger on homebuying in NYC, which features a quote from HSH.com VP Keith Gumbinger:
“It’s an expensive part of the world to do business,” said Keith Gumbinger, vice president of HSH.com. Land here, he added, is “incredibly expensive.”
Gumbinger advises house hunters to be flexible. “It may mean moving out to the sticks,” he says. Or it may also mean being open-minded about where you live within the region, adds Ray Mignone, a financial adviser in Little Neck, Queens, who believes there are a few home bargains on Long Island.
May 23, 2014: “Tiger Woods Course Design Debut Drives Mexico Home Prices”, a Bloomberg article by Jonathan Levin and Brendan Case that features a line from HSH.com VP Keith Gumbinger on home equity:
To qualify, borrowers usually need 20 percent equity in a property and a credit score of at least 720 on a scale from 300 to 850, said Keith Gumbinger, vice president of HSH.com, a mortgage data firm in Riverdale, New Jersey.
May 22, 2014: “Mortgage Rates for U.S. Loans Fall as 30-Year at 4.14%”, a Bloomberg article by Prashant Gopal on mortgage rates, with a quote from HSH.com VP Keith Gumbinger:
Sales of previously owned homes rose 1.3 percent in April, the first increase in four months, the National Association of Realtors said today. The drop in loan costs this month may help spur some would-be buyers, said Keith Gumbinger, vice president of HSH.com, a Riverdale, New Jersey-based mortgage-data firm.
“With a combination of a flatter trajectory for home prices and lower rates, that should be preserving affordability as we go through the spring homebuying season,” Gumbinger said in a telephone interview yesterday.
May 21, 2014: “Want To Own An Average Seattle Home? Better Make $73K/Year”, a Curbed Seattle article by Sean Keeley about our Salary in 27 Cities study:
Mortgage website HSH.com determined how much a person would have to earn to be able to afford the principal and interest on a median-priced home in various cities around the U.S. Here in Seattle, that number is $73,851.06, the 7th-highest city on the list.
May 21, 2014: “FHFA’s Watt Imposing Less Risk Seen Rescuing Housing”, a Bloomberg Businessweek article by Kathleen Howley on FHFA’s Mel Watt, featuring a line from HSH.com VP Keith Gumbinger:
Banks such as Wells Fargo & Co. and Bank of America Corp. typically cap a borrower’s total debt-to-income at 36 percent to quality for a mortgage, according to Keith Gumbinger, vice president of research firm HSH Inc. In some cases, Fannie Mae and Freddie Mac will back mortgages with DTIs above 43 percent, Watt said.
May 15, 2014: “Home Equity Loans Make a Cautious Return”, a New York Times article by Lisa Prevost on home equity loans making a comeback, featuring HSH.com VP Keith Gumbinger:
Another potential market for equity loans are those homeowners who refinanced their mortgages when interest rates were well under 4 percent and may now be more inclined to borrow on their equity and improve their existing home rather than sell and move up. But the reality is that people tend to move “when their needs have changed appreciably,” noted Keith Gumbinger, the vice president of HSH.com, a financial publisher, and they generally don’t have much choice.
Interest rates for equity lending are also higher than current rates on a new first mortgage. Rates on equity loans average just under 6 percent, Mr. Gumbinger said. Helocs, which usually have a variable rate based on the prime rate, average around 5 percent.
Mr. Gumbinger noted, too, that lenders are more strict about how much they will allow homeowners to borrow. “In general, lenders won’t let you leverage more than 80 percent of the value of the home,” he said. So even with higher home values, many homeowners still may not have enough equity to qualify.
May 12, 2014: “What is Mortgage Insurance?”, a Fox Business syndicated article on our Private Mortgage Insurance content by HSH.com VP Keith Gumbinger.
May 9, 2014: “You’re Paying Too Much in Fees”, a Wall Street Journal article by Liz Moyer, Joe Light, and AnnaMaria Andriotis providing financial advice, featuring HSH.com VP Keith Gumbinger:
Lender fees, also called origination fees, often range from 0% to 1% of the total mortgage amount, says Keith Gumbinger, vice president of mortgage-info website HSH.com.
May 4, 2014: “Housing Recovery Leaves Millennials Out in the Cold”, a Yahoo! Finance article by Marine Cole about young Americans in the housing market, featuring HSH.com VP Keith Gumbinger:
Homes have become too expensive for many Americans, especially for young people. Prices increased 13 percent for the 12 months ending in February in 20 major cities, according to the S&P/Case-Shiller Home Price index. Additionally, the supply of homes has remained tight. “There’s really nothing that’s compelling [people] to buy,” said Keith Gumbinger, vice president at HSH.com, which publishes mortgage and consumer loan information.
May 2, 2014: “Countdown to Buying Your First Home: Our Checklist”, a CNN Money article by Karen Cheney on first time homebuying challenges, featuring HSH.com VP Keith Gumbinger:
“Interest rates remain the envy of even your grandparents,” says Keith Gumbinger, vice president of mortgage publisher HSH.com. First, make your finances sparkle.
April 28, 2014: “Refinance your home mortgage now”, a MarketWatch article by Jonathan Clements on mortgage refinancing that features HSH.com VP Keith Gumbinger:
“Interest rates are no longer at 60-year lows,” notes Keith Gumbinger, a vice president with HSH.com, a mortgage-information provider. “We got as low as 3.44% for a 30-year conforming loan in December 2012. We’re above those historic lows by almost a full percentage point, but rates are still very favorable.”
April 26, 2014: “Refinancing a mortgage? Do it soon.”, a Wall Street Journal article by Jonathan Clements on why to refinance, featuring HSH.com VP Keith Gumbinger:
“Interest rates are no longer at 60-year lows,” notes Keith Gumbinger, a vice president with HSH.com, a mortgage-information provider. “We got as low as 3.44% for a 30-year conforming loan in December 2012. We’re above those historic lows by almost a full percentage point, but rates are still very favorable.”
April 24, 2014: “Jumbo Mortgage Rates Lower Than Expected”, a Wall Street Journal article by Anya Martin about the recently low jumbo mortgage rates, featuring HSH.com VP Keith Gumbinger:
Relatively low jumbo mortgage rates can save a home buyer significant money in tight housing markets like San Francisco and Manhattan, where virtually every loan is a jumbo, says Keith Gumbinger, vice president of HSH.com.
Current rates are close to the bottom of an approximately six-month downward swing followed by stabilization that started in September, when average jumbo 30-year fixed rates were at 4.88%, Mr. Gumbinger says. Since then, rates have fluctuated only about a third of a percentage point, floating up and down between a low of 4.35% in November and a high of 4.67% at around the start of 2014.
April 18, 2014: “What first-time buyers should know about an open house”, a MSN Real Estate syndication of an article by Marcie Geffner on how to navigate an open house.
April 17, 2014: “Freddie Mac: Mortgage rates near low for year, 30-year at 4.27%”, a Los Angeles Times article by E. Scott Reckard on mortgage rates that mentions HSH.com VP Keith Gumbinger:
At HSH.com, another rate tracker, Vice President Keith Gumbinger said the economy’s growth has been “more sideways than upwards,” leading investors to pull money out of stocks recently and show more willingness to accept lower interest rates.
“News that rates are closer to recent lows than highs might actually put a few more buyers in the [housing] market this spring,” Gumbinger said. “Hopefully, they will find sellers to meet them,” a reference to recent shortages in homes on the market.
April 8, 2014: “Is it time to bring back the homebuyer tax credit?”, a MSN Real Estate syndication of an HSH.com article on the homebuyer tax credit.
April 4, 2014: “Sunny outlook for sellers in upscale neighborhoods”, a CNN Money article by Lisa Gibbs and Amanda Gengler on real estate markets that showcases HSH.com VP Keith Gumbinger:
Will you need a large mortgage (typically more than $417,000)? The premium over what you’d pay for a smaller loan, which grew as wide as two full percentage points during the bust, has shrunk to next to nothing. Today rates on jumbos average 4.43%, vs. 4.42% for smaller loans, thanks in part to growing competition among banks. Big banks often offer the best rates and options on these types of loans, says Keith Gumbinger of mortgage publisher HSH.com.
April 3, 2014: “US Mortgage Rates Rise as Jobs Report Awaited”, a Bloomberg article by Prashant Gopal on U.S. mortgage rates that features a quote from HSH.com VP Keith Gumbinger:
“What we’re waiting for is economic news to know whether or not the winter was the cause for the stumble in economic growth, Keith Gumbinger, vice president of HSH.com, a Riverdale, New Jersey-based mortgage-data firm, said in a telephone interview yesterday.
March 27, 2014: “Big loans for small spaces”, a Wall Street Jounal article by Lisa Selin Davis on jumbo loans in expensive housing markets, featuring HSH.com VP Keith Gumbinger.
If there aren’t many comparable properties, says Keith Gumbinger, vice president of mortgage-information firm HSH.com, “that might limit the number of lenders among whom the borrower would shop, and lenders who do make these loans may or may not have a full menu of product available.” Mr. Gumbinger says that lenders may choose only to offer one product, like an adjustable-rate mortgage, or could potentially add a premium to either the interest rate or the fees.
March 27, 2014: “What to do if your home-equity line is about to end”, a MarketWatch article by Christina Rexrode that features HSH.com VP Keith Gumbinger:
“If you have an interest-only, you should be reaching out to your lender right now, saying, ‘I see the train coming down the tracks, what can we do?’” said Keith Gumbinger, vice president of the mortgage-data provider HSH.com.
March 5, 2014: “If you refinanced your mortgage, you’re probably not going to want to sell your house”, a Washington Post article by Dina El Boghdady on why not to sell your home, featuring HSH.com VP Keith Gumbinger:
“It will certainly affect people in markets that have experienced tremendous price appreciation or people who have lived in their homes for a long time and accumulated tremendous appreciation,” said Keith Gumbinger, a vice president at the mortgage information firm HSH.com.
February 20, 2014: “HARP refinances pass 3 million mark”, a MSN Real Estate syndicated piece that features HSH.com content about the Home Affordable Refinance Program.
February 18, 2014: “Do you make enough to buy a house? Depends (heavily) on where you live”, a U.S. News & World Report article by Danielle Kurtzleben featuring our research and HSH.com VP Keith Gumbinger:
“In the third quarter we had some of the highest interest rates show up in about two years,” says Keith Gumbinger, vice president at HSH.com. That pushed home prices down, he adds. “What we find is in looking for that balance of affordability, if interest rates are rising, and we did have that in the third quarter, means home prices have to decline somewhat.” That means in the fourth quarter, when interest rates also fell, affordability improved for homebuyers, he says.
February 18, 2014: “How much income do you need to buy a home in the Bay Area?”, a San Francisco Chronicle article by Kathleen Pender on our salary needed to buy a median-priced home in 25 of the nation’s largest metro areas:
The only thing about the study that surprised HSH Vice President Keith Gumbinger is that the median price in the Bay Area fell 3.2 percent from the third to the fourth quarter (although it was up 15 percent on a year-over-year basis). That means the average income needed to buy a home in the Bay Area fell by $9,562 from the third to the fourth quarter.
February 18, 2014: “Here’s how much money you must earn to buy a home in 25 big US cities”, a Business Insider article by Megan Willett on our salary needed to buy a home in 25 cities study:
HSH.com, an online mortgage and consumer loan information website, figured out how much a person would have to earn to afford a home in 25 of the country’s largest metropolitan areas.
February 14, 2014: “4 Factors will influence housing inventory in 2014”, a Fox Business piece on housing inventory factors featuring HSH.com VP Keith Gumbinger:
Market observers like Keith Gumbinger, vice president of HSH.com, believe the home-price gains we witnessed in 2013 won’t sustain throughout 2014. “Overall, we expect the recovery in housing markets to persist in 2014, but in a context of flattening gains for home prices, higher inventory levels and firm mortgage rates and underwriting standards.”
January 31, 2014 “Your money: New real estate rules for 2014”, aReuters article by Beth Pinsker containing a quote from HSH.com VP Keith Gumbinger:
“The one thing we can say with certainty is that rates will go up and down,” says Keith Gumbinger, vice president at HSH.com, a mortgage information website. When they will rise and fall, and by how much, is an open question.
Gumbinger says some people are rushing into home purchases or refinancing because they’ve panicked, applying the conventional wisdom that interest rates will climb.
But Gumbinger says before you buy, focus on the long-term value of the property to determine whether it’s worth getting into a 30-year mortgage.
January 29, 2014: “Higher rates loom for some modified mortgages”, a USA Today Money article by Julie Schmit addressing rising costs under HAMP with a quote from HSH.com VP Keith Gumbinger:
The increased costs “could be a problem for some people,” says Keith Gumbinger, mortgage expert with HSH.com.
January 23, 2014: “A five year wait for a new rate”, a Wall Street Journal article by AnnaMaria Andriotis about the new jumbo 5/5 ARM with insight from HSH.com VP Keith Gumbinger:
But the opposite situation could also play out, with borrowers locking in a rate for five years just before rates start to drop. Critics say this mortgage only works in borrowers’ favor if they happen to time the market right. “It’s a crapshoot,” says Keith Gumbinger, vice president of mortgage-info firm HSH.com.
January 21, 2014: “Home-equity loans are back, pitfalls included”, a MarketWatch.com piece by Amy Hoak about applying for a loan or credit line containing a quote from HSH.com VP Keith Gumbinger:
“Given that the equity in a home can be the largest retirement asset for many people, it’s a good idea to protect it as best you can,” said Keith Gumbinger, vice president of HSH.com, a publisher of consumer loan information. “Equity built through the regular pay-down of your mortgage takes a long time to build, and market-given equity—as in from a run-up in prices—can be ephemeral, as many have painfully learned in the recent price collapse.”
January 13, 2014: “5 ways the jumbo mortgage market will change in 2014”, a MarketWatch.com outlook piece by AnnaMaria Andriotis containing a quote from HSH.com VP Keith Gumbinger:
Separately, fewer lenders will make exceptions for borrowers who don’t supply full income documentation. Affluent jumbo borrowers have been able to provide partial documentation with some lenders and still get approved – a setup that helped those who are self-employed or have complex income structures.
But the CFPB’s new mortgage rules prohibit low- and no-documentation mortgages. These loans “may be much harder to come by,” says Keith Gumbinger, vice president at mortgage-info website HSH.com.
(This also appeared January 9, 2014 as “The Era of Big Loans” in the Wall Street Journal)
January 10, 2014: “Should You Buy Inflation Protection?”, a Wall Street Journal by Joe Light containing a good reason to select a fixed-rate mortgage provided by HSH.com VP Keith Gumbinger:
Another good move: If you already are planning to buy a home, do it soon. Over very long periods, home prices tend to keep up with inflation.
The rate of 30-year fixed-rate mortgages, now at 4.6%, is low and expected to rise as the Federal Reserve winds down its bond-buying stimulus program.
Since inflation may be accompanied by wage growth, while mortgage payments are fixed, a rise in prices could make it easier for a homeowner to pay off the debt, says Keith Gumbinger, vice president at HSH.com, a mortgage-information website.
January 10, 2014: “What the new mortgage rules mean for you”, a CNNMoney.com story by Les Christie with some words and context from Keith Gumbinger, HSH.com’s vice president”
Lenders don’t seem to be too worried about the new rules, according to Keith Gumbinger of HSH.com, a mortgage information provider. “It’s no surprise; everybody has been preparing for the change for months,” he said. “Because there will be additional underwriting scrutiny, it could gum up the works initially and slow loan processing, but it’s really just the codification of things that are already in place.”
January 10, 2014: “These 4 New Rules Can Stop You from Buying a Home”, a Fiscal Times item by Laura Shin with a review of some of the new mortgage rules from HSH.com VP Keith Gumbinger:
“Over the last couple of years, lending underwriting standards have been tight in the way of verifying income, assets and requiring a down payment and providing multiple documentation streams, and not allowing you all kinds of budget-stretching flexibilities,” says Keith Gumbinger, vice president at HSH, a mortgage information website.
What the Changes Really Mean
The new rules will still affect the market, Gumbinger of HSH says: “Any time there’s a rule change, it adds some cost to the origination of a mortgage, so there’s likely to be some increase in fees. Ultimately costs will rise to borrowers “but not by much.”
Those who get paid seasonally, earn big annual bonuses, or the self-employed may also find it more challenging to meet these new standards, says Gumbinger.
January 9, 2014: “The forecast for housing in 2014: Higher prices, rates”, a Baltimore Sun an outlook column by Jamie Smith Hopkins included a forward-looking statement from HSH.com VP Keith Gumbinger:
“There are still challenges, but I think all in all, we should have a pretty solid housing market in 2014,” said Keith T. Gumbinger, a vice president at mortgage information site HSH.com.
One of those challenges: Buyers shouldn’t count on mortgage rates in the 4 percent range.
Rates for 30-year fixed-rate products were hovering around 4.5 percent at the start of the year, up from 3.3 percent a year earlier. Gumbinger and others think 5 percent or above is likely later this year, decreasing buying power – one of the reasons they expect a smaller increase in sale prices nationally.
The Federal Reserve decided in December to begin reducing its $85 billion a month bond-buying spree, which helped keep rates low. Subtracting $10 billion from those monthly purchases will add some pressure to mortgage rates, Gumbinger said. So will the healing economy.
January 9, 2014: “Home buyers and sellers buckle up”, a Los Angeles Daily News a Gregory Wilcox story on market conditions that included a quote from Keith Gumbinger, HSH.com’s VP:
“Mortgage rates have been steady to slightly firmer in recent weeks but remain in familiar territory,” Keith Gumbinger, vice president of rate tracker HSH.com said in an email. “The warmer economy and less aggressive Federal Reserve are keeping rates pretty firm at the moment.”
January 9, 2014: “Home loan rates level off; 30-year fixed at 4.51%”, a Los Angeles Times a market update from E. Scott Reckard with some news for mortgage borrowers from Keith Gumbinger, HSH.com’s VP:
Given the tight underwriting standards already in place in the market, the new Consumer Financial Protection Bureau rules may not do much to further restrict credit availability — but they don’t do much to enhance it either, said Keith Gumbinger, vice president of the rate-tracking firm HSH.com.
“Lenders have been deeply scrutinizing borrower applications for several years, requiring plenty of documentation and doing their best to make certain that borrowers can afford the loan,” Gumbinger said in an HSH report on rates.”Until Friday, that’s been a kind of market-enforced discipline.”
January 8, 2014: “Why 2014 is the year to get out of debt”, a CNNMoney.com Melanie Hicken’s piece about how to plan for changes in 2014 with context from HSH.com VP Keith Gumbinger:
Long-term interest rates have already risen in anticipation of the Fed’s decision, so there likely won’t be a rapid spike in mortgage rates, which are already more than a percentage point higher than last year’s historic lows. Still, prospective borrowers could see mortgage rates reach more than 5% this year as the economy continues to strengthen, said Keith Gumbinger, vice president at mortgage information site HSH.com.
But many other consumer loans should remain cheap since they are tied to short-term interest rates, which the Fed has committed to keeping near zero.
January 2, 2014: “4 Reasons You Shouldn’t Worry Over Rising Mortgage Rates”, a Yahoo Finance Mandi Woodruff column about mortgage rates with both some outlook and historical references from HSH.com VP Keith Gumbinger:
“I don’t think there’s any reason to panic,” says Keith Gumbinger, vice president of mortgage rate tracker HSH.com. “Buying a home will be somewhat more expensive, but I don’t think it’s going to be a matter of ‘Oh, I’m losing so much ground that I have to go out and buy [a home] right now.’”
Historical context is important. A little over a decade ago, the lowest average rate for a 30-year fixed rate mortgage was around 5.24%, Gumbinger notes. It’s easy to forget that when rates fell so dramatically following the housing crash.
“Even if we do start to see 5% rates appearing in 2014, rates will absolutely remain favorable [to buyers],” he says.
You can see other prominent HSH.com news mentions for 2013 here.