Economic and Housing Research
Weekly Commentary
May 16
Mortgage rates followed U.S. Treasury bond yields higher this week on signs of stronger consumer spending. Advanced retail sales rose 0.1 percent in April, above the market forecast consensus of a 0.3 percent decline. Excluding such items as automobiles and gasoline, sales were up 0.5 percent for the second time in three months.
Households are also shoring up their balance sheets. Total household debt fell by about $110 billion in the first quarter. In addition, approximately 3.0 million homeowners were seriously delinquent (90 days or more delinquent or in foreclosure) on their first mortgages, down from a peak of about 5.1 million in the fourth quarter of 2009. >> Next Commentary: May 23
Refinancing Activity Reports
Freddie Mac compiles statistics and produces two quarterly reports, the "Cash-out Refinance Report" and the "Refinance Product Transition Report" based on loans refinanced in our retained portfolio:
Q4 2012 Product Transition Release
27 Percent of Borrowers Shortened Their Loan Term When Refinancing During the Fourth Quarter
February 12, 2013
27 Percent of Borrowers Shortened Their Loan Term When Refinancing During the Fourth Quarter
Borrowers in lower cost housing markets more likely to shorten loan term when refinancing in 2012
Q4 2012 "Cash-Out" Release
84 Percent of Refinancing Homeowners Maintain or Reduce Mortgage Debt in Fourth Quarter
February 4, 2012
More Refinance Borrowers "Cash-In" than "Cash-Out"
Borrowers Cash-Out Just $8 Billion When Refinancing
Metro Areas With More Severe House Price Declines Tend to Have Very Little "Cash-Out" Shares
Disclaimer
Opinions, estimates, forecasts and other views contained in this page are those of Freddie Mac's Office of the Chief Economist, do not necessarily represent the views of Freddie Mac or its management, should not be construed as indicating Freddie Mac's business prospects or expected results, and are subject to change without notice. Although the Office of the Chief Economist attempts to provide reliable, useful information, it does not guarantee that the information is accurate, current or suitable for any particular purpose. © 2013 by Freddie Mac. Information from this page may be used with proper attribution.