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...Basically, I defined what was wrong with mortgage markets. These “modified mortgages” entailed you buying the home, borrowing the money and paying 1 per cent on the mortgage for three years....
...In the UK, home loans are funded in part from deposits and lenders carry the risk of default. Insurance to protect against defaults, widespread in the 1990s, is now rarely used....
...Mortgage rates were at 7.5 per cent, a 10-year high and more than double the 3.25 per cent interest Angela, who requested that the Financial Times not use her last name, was paying on the loan on her home...
...However, funding has also come from private lenders and the commercial mortgage-backed securities sector, often bundled into collateralised loan obligations....
...The growing availability of mortgages has been matched by a growth in new loans....
...Sales of new-single family homes in the US have stalled since the start of this year, as mortgage rates creep up from the multi-month lows they hit in late 2023....
...Mortgage brokers have welcomed an “innovative” home loan aimed at first-time buyers, which requires a deposit of just £5,000 for homes worth up to £500,000....
...The Federal Reserve is expected to cut rates, probably beginning in June. The average rate for a 30-year, fixed home mortgage was around 6.63 per cent last week, according to Freddie Mac....
...That discount reflects concerns over the potential for an increase in bad loans. Its bad loans from residential mortgages have already risen 9.6 per cent to Rmb27.8bn ($3.8bn)....
...The data comes against a backdrop of recent volatility in the mortgage market. Home loan rates peaked in the summer of 2023 before declining sharply at the end of last year....
...Worries have persisted as banks disclose exposure to losses on commercial real estate loans as work from home leaves offices underused....
...For context, single-family residential mortgages made up 34% of FDIC-insured bank loan books in 2009, a far higher level than the 9.3% of loan books currently made up by CRE loans....
...Home loan arrears are lower than during the 2008-09 financial crisis in part because of a resilient labour market and improved mortgage regulations....
...The index, which tracks the proportion of lenders reporting an increase in demand for home loans versus those reporting a decrease, rose to 35.9 in the first quarter, according to the Bank of England’s quarterly...
...China has made a record cut to a mortgage-linked loan rate as policymakers roll out more targeted support to the country’s ailing property sector....
...In 2021 the government introduced a 95 per cent loan-to-value mortgage scheme which officials say has helped close to 40,000 home buyers....
...Former UK science minister George Freeman has blamed an impending jump in the cost of his mortgage for his decision to quit the role and warned politics was becoming an unaffordable career....
...As mortgage rates hover around 6 per cent, nearly 70 per cent of Manhattan homes purchased in the final quarter of 2023 were bought without a mortgage, according to Pamela Liebman, the chief executive of...
...“Previously, older borrowers may have used [mortgages] for home improvement, travel or to help a younger family member get on the property ladder,” said David Hollingworth, associate director at L&C, a mortgage...
...Results at BofA, like its large competitors, were also dragged down by costs tied to last year’s regional banking crisis after the Federal Deposit Insurance Corp imposed another round of fees on the nation...
...Would-be homebuyers who have been dreaming of Federal Reserve rate cuts might need to dial down their hopes....
...Over the past few years UK policymakers have explored the idea of mortgages with an interest rate locked in for the term of the loan, along the lines of long-term products offered in countries like the US...
...They predicted corporate loan demand would keep falling but said mortgage demand was set to rebound in a positive signal for house prices in the eurozone, which fell last year for the first time in more...
...That’s why they have to react so quickly,” said Simon Gammon, a mortgage broker at Knight Frank. At the end of 2023 there was a rally in bond markets that prompted lenders to lower mortgage rates....
...The Federal Deposit Insurance Corporation on Thursday said the number of weak US banks had risen by eight to 52 in the final three months of 2023, the biggest jump since the demise of SVB....
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