Housing Market, Mortgage | featured news

President Obama will announce new figures Friday showing a dramatic spike in the number of Americans taking advantage of federal programs designed to help struggling homeowners and stabilize the lagging housing industry, administration officials said Thursday.

Banks have become so restrictive in making mortgages that many worthy homebuyers are being frozen out of the U.S. housing market, and lending practices are not likely to loosen any time soon, Federal Reserve Chairman Ben Bernanke said on Thursday.

Average U.S. rates for 30-year and 15-year fixed mortgages fell to fresh record lows this week, making home-buying and refinancing more affordable than ever for those who can qualify.

The government-backed mortgage financier said it made a profit in the first quarter and that it does not need additional bailout money — a first since the federal government took it over in 2008.

U.S. mortgage giant Fannie Mae made money in the first three months of the year and is not seeking additional federal aid. It's the first time the company has reported a net income gain since it was taken over by the government during the 2008 financial crisis....

Bank of America is making its first moves as part of its deal with the government in the massive $25 billion mortgage settlement. The nation’s second largest bank said today that it started reaching out to more than 200,000 customers about principal reductions on their mortgages. The letters from the bank are expected to arrive at customers’ homes this week with much of the remaining to be sent out by July.

A couple of weeks ago, I responded to a couple of questions about paying off your mortgage early. This week, I got the opposite question. Given record low mortgage rates, does it even make sense to ever pay off your mortgage at all?

Mortgage rates are sharply lower on news of a weakening job market, with the 30-year fixed loan averaging 3.88% this week and the 15-year fixed at a record low of 3.11%, according to Freddie Mac.

Treasury Secretary Timothy Geithner said on Wednesday that the United States was far behind on reforming the country's housing finance system where the government's mortgage buyers Fannie Mae and Freddie Mac provide funding for the bulk of U.S. home loans.

Edward J. DeMarco, who oversees Fannie Mae and Freddie Mac, has infuriated many by refusing to tell the home loan giants to reduce the amounts owed by distressed homeowners.