U.S. fixed-mortgage rates hit a new low, according to survey data released today by Freddie Mac. The 30-year rate reached 3.84 percent, beating the previous low-rate set this February. The 15-year rate is also down to 3.07 percent, 0.82 percent lower than in May 2011. [more]

If you’re one of the estimated 11 million homeowners burdened with an underwater mortgage, a new federal policy change could be good news: Starting in June, when you want to do a short sale to shed your mortgage debt load and avoid foreclosure, you may not have to wait for months to hear back from your bank when you submit an offer from a potential purchaser. [more]

What’s behind the unusually high rate of contract cancellations and settlement delays in the real estate market? With signs of recovery emerging in many parts of the country, shouldn’t deals be zipping along with minimal complications?

Apparently not. Nearly one-third of real estate agents in a new national survey reported experiencing contract cancellations — purchases crumbling before going to closing — in February. [more]

Florida has more loans that are one year or more delinquent than any state in the U.S. but California, according to a new report by the Federal Home Finance Agency. There are a total of 166,000 Florida loans more than one year delinquent, out of 292,000 delinquent loans backed by Freddie Mac and Fannie Mae, the Palm Beach Post reported. California has 174,000 loans that are delinquent by a year or more. [Palm Beach Post]

The Obama administration’s new plan to stimulate refinancings of Federal Housing Administration mortgages is likely to help large numbers of homeowners cut their monthly costs — even those who are deeply underwater. But it’s also likely to be a disappointment to many borrowers who aren’t aware of the program’s fine print and end up missing an opportunity to switch into a loan with a rate below 4 percent. [more]

Mortgages on the rise

Mortgage rates are rising nationwide, leaving the historically low rates of the last three weeks behind, according to the weekly Freddie Mac’s Primary Mortgage Market Survey released today.

For 30-year, fixed-rate mortgages, the average rate was 3.95 percent in the week ending Feb. 23, up week-over-week from 3.87 percent. Last year at same time, 30-year fixed-rate mortgages averaged 4.95 percent. The data shows a similar increase for 15-year, fixed-rate mortgages, which were up to 3.16 percent from 3.19 percent the week prior, and from 4.22 percent year-over-year. [more]

The Federal Housing Finance Agency has proposed replacing the mortgage-backed securities that Fannie Mae and Freddie Mac currently issue with a uniform security in a strategic plan it sent to Congress and the Obama administration, the Wall Street Journal reported.

The switch would mark a major change for both companies, and according to the FHFA paper, would be a public utility that could outlast the government-sponsored enterprises.  [more]

Mitt Romney and Newt Gingrich

As the battleground for the Republican presidential nomination moves to Florida, the key issue has become the nation’s housing crisis. Both the New York Times and U.S. News & World Report noted that as a result, frontrunners Newt Gingrich and Mitt Romney have altered their rhetoric on housing.

Romney has previously said that the best cure for the housing market is time. He’s supported a hands-off approach that allows the market to hit its bottom and then recover naturally. [more]

If you or someone you know has lost a job and are in danger of falling behind on mortgage payments, here’s some potentially important news for you: The two largest players in home mortgages, Fannie Mae and Freddie Mac, are revising their policies on forbearance when unemployment interferes with your ability to stay current on your loan. [more]

Though its demise drew little attention because of the partisan year-end brawl over the payroll tax cut extension in Congress, a key mortgage financing benefit disappeared at the end of December: The ability of large numbers of homebuyers and owners to write off the premiums they pay for mortgage insurance.

The loss of that tax deduction — plus mandatory new fees imposed by Congress on all new conventional and Federal Housing Administration loans — could effectively ratchet up the costs of homeownership this year. [more]