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CHICAGO (MarketWatch) -- Fixed-rate mortgages moved up slightly in the week ending Thursday, breaking a string of six weekly declines, Freddie Mac said. The national average rate on the benchmark 30-year mortgage was 6.12%, up from 6.1% a week earlier. The 15-year mortgage, a popular refinancing choice, also ticked up, to 5.7% from 5.67%. Five-year, Treasury-indexed hybrid adjustable-rate mortgages averaged 5.75%, unchanged from last week. One-year Treasury-indexed ARMs averaged 5.2%, up from 5.18%. The two fixed-rate loans required the payment of an average 0.5 points to achieve the rate; the ARMs needed 0.6 points. A point is 1% of the loan amount, charged as prepaid interest. "The miniscule rise in mortgage rates this week most likely reflects market expectations that the Federal Reserve will once again raise rates next week," said Frank Nothaft, Freddie Mac's (FRE: Freddie Mac News, chart, profile, more Last: 66.98+0.96+1.45% 4:54pm 01/26/2006 Add to portfolio Analyst Create alertInsider Discuss Financials Sponsored by: FRE66.98, +0.96, +1.5%) vice president and chief economist. "Keep in mind, however, that long-term rates are still below December's monthly average and continue to fuel the housing market. Last week, mortgage applications for home purchases were stronger than last December's average. Even refinancing activity remains strong, averaging around 43% of all mortgage applications," he added.
NEW YORK (Reuters) - IndyMac Bancorp Inc. (NDE.N: Quote, Profile, Research), which runs one of Southern California's largest savings and loans, on Thursday said fourth-quarter profit rose 29 percent, as mortgage production surged to a record. Mortgage production rose 60 percent to $18 billion, amid signs of a cooling housing market, and U.S. market share increased to 2.85 percent from 1.66 percent. This helped offset a dip in net interest margin to 1.98 percent from 2.40 percent, and 2.09 percent in the third quarter. "I still think it's a pretty good environment for mortgage lending," IndyMac Chief Executive Michael Perry said in an interview. "Most of our margin decline stems not from competition but from a change in our product mix. That change, however, has reduced our costs and kept our return on capital from mortgage production the same." IndyMac's home loan volume is roughly equally divided among fixed-rate mortgages; hybrid adjustable-rate mortgages, which have fixed rates for a few years and then adjust annually; and option ARMs, which let borrowers choose what pay each month. Net income for the Pasadena-based parent of IndyMac Bank rose to $72.3 million, or $1.09 per share, from $56 million, or 87 cents. Results included 9 cents per share for an accounting change related to mortgage servicing rights. Revenue increased 21 percent to $281 million. Analysts polled by Reuters Estimates on average forecast profit of $1.16 per share on revenue of $278.6 million. IndyMac raised its quarterly stock dividend to 44 cents from 42 cents. As at many banks, the margin narrowed because long-term rates have not risen despite 13 short-term rate increases by the Federal Reserve since mid-2004. This keeps banks from charging more on loans, even as they pay more on deposits. "Net interest margin contraction, lower gain-on-sale margin and higher expenses were only partially offset by higher originations and servicing volume," wrote Lehman Brothers Inc. analyst Bruce Harting. "We expect net interest margin pressures to ease following the conclusion of Fed tightening." Harting rates the bank "hold." Rates averaged 6.12 percent on 30-year fixed mortgages and 5.20 percent on one-year ARMs in the week ended Jan. 26, mortgage financier Freddie Mac (FRE.N: Quote, Profile, Research) said on Thursday. IndyMac forecast 2006 profit of $4.50 to $5.20 per share. Perry said the bank's "base case" estimate of $4.88 is similar, after accounting for stock options, to the $5.00 it had projected in October. Analysts on average forecast $4.92. Loans rose 28 percent to $14.2 billion, deposits rose 34 percent to $7.7 billion, and assets rose 27 percent to $21.5 billion, a regulatory filing showed. IndyMac shares rose 80 cents to $39.19 in afternoon trading on the New York Stock Exchange. Through Wednesday, the shares have risen 14 percent in the last year. © Reuters 2006. All Rights Reserved.
NEW YORK, Jan 25 (Reuters) - Irwin Financial Corp. (IFC.N: Quote, Profile, Research), a bank holding company, said on Wednesday it had hired JPMorgan (JPM.N: Quote, Profile, Research) as it considers selling its mortgage unit Irwin Mortgage. Irwin's Chairman Will Miller said the market for conventional first mortgages had changed significantly in the past five years and this business was no longer a good fit with the rest of the company, which was more focused on commercial lines of business. © Reuters 2006. All Rights Reserved.
Mortgage News Archives:
CHICAGO (MarketWatch) -- Fixed-rate mortgages moved up slightly in the week ending Thursday, breaking a string of six weekly declines, Freddie Mac said. The national average rate on the benchmark 30-year mortgage was 6.12%, up from 6.1% a week earlier. The 15-year mortgage, a popular refinancing choice, also ticked up, to 5.7% from 5.67%. Five-year, Treasury-indexed hybrid adjustable-rate mortgages averaged 5.75%, unchanged from last week. One-year Treasury-indexed ARMs averaged 5.2%, up from 5.18%. The two fixed-rate loans required the payment of an average 0.5 points to achieve the rate; the ARMs needed 0.6 points. A point is 1% of the loan amount, charged as prepaid interest. "The miniscule rise in mortgage rates this week most likely reflects market expectations that the Federal Reserve will once again raise rates next week," said Frank Nothaft, Freddie Mac's (FRE: Freddie Mac News, chart, profile, more Last: 66.98+0.96+1.45% 4:54pm 01/26/2006 Add to portfolio Analyst Create alertInsider Discuss Financials Sponsored by: FRE66.98, +0.96, +1.5%) vice president and chief economist. "Keep in mind, however, that long-term rates are still below December's monthly average and continue to fuel the housing market. Last week, mortgage applications for home purchases were stronger than last December's average. Even refinancing activity remains strong, averaging around 43% of all mortgage applications," he added.
NEW YORK (Reuters) - IndyMac Bancorp Inc. (NDE.N: Quote, Profile, Research), which runs one of Southern California's largest savings and loans, on Thursday said fourth-quarter profit rose 29 percent, as mortgage production surged to a record. Mortgage production rose 60 percent to $18 billion, amid signs of a cooling housing market, and U.S. market share increased to 2.85 percent from 1.66 percent. This helped offset a dip in net interest margin to 1.98 percent from 2.40 percent, and 2.09 percent in the third quarter. "I still think it's a pretty good environment for mortgage lending," IndyMac Chief Executive Michael Perry said in an interview. "Most of our margin decline stems not from competition but from a change in our product mix. That change, however, has reduced our costs and kept our return on capital from mortgage production the same." IndyMac's home loan volume is roughly equally divided among fixed-rate mortgages; hybrid adjustable-rate mortgages, which have fixed rates for a few years and then adjust annually; and option ARMs, which let borrowers choose what pay each month. Net income for the Pasadena-based parent of IndyMac Bank rose to $72.3 million, or $1.09 per share, from $56 million, or 87 cents. Results included 9 cents per share for an accounting change related to mortgage servicing rights. Revenue increased 21 percent to $281 million. Analysts polled by Reuters Estimates on average forecast profit of $1.16 per share on revenue of $278.6 million. IndyMac raised its quarterly stock dividend to 44 cents from 42 cents. As at many banks, the margin narrowed because long-term rates have not risen despite 13 short-term rate increases by the Federal Reserve since mid-2004. This keeps banks from charging more on loans, even as they pay more on deposits. "Net interest margin contraction, lower gain-on-sale margin and higher expenses were only partially offset by higher originations and servicing volume," wrote Lehman Brothers Inc. analyst Bruce Harting. "We expect net interest margin pressures to ease following the conclusion of Fed tightening." Harting rates the bank "hold." Rates averaged 6.12 percent on 30-year fixed mortgages and 5.20 percent on one-year ARMs in the week ended Jan. 26, mortgage financier Freddie Mac (FRE.N: Quote, Profile, Research) said on Thursday. IndyMac forecast 2006 profit of $4.50 to $5.20 per share. Perry said the bank's "base case" estimate of $4.88 is similar, after accounting for stock options, to the $5.00 it had projected in October. Analysts on average forecast $4.92. Loans rose 28 percent to $14.2 billion, deposits rose 34 percent to $7.7 billion, and assets rose 27 percent to $21.5 billion, a regulatory filing showed. IndyMac shares rose 80 cents to $39.19 in afternoon trading on the New York Stock Exchange. Through Wednesday, the shares have risen 14 percent in the last year. © Reuters 2006. All Rights Reserved.
NEW YORK, Jan 25 (Reuters) - Irwin Financial Corp. (IFC.N: Quote, Profile, Research), a bank holding company, said on Wednesday it had hired JPMorgan (JPM.N: Quote, Profile, Research) as it considers selling its mortgage unit Irwin Mortgage. Irwin's Chairman Will Miller said the market for conventional first mortgages had changed significantly in the past five years and this business was no longer a good fit with the rest of the company, which was more focused on commercial lines of business. © Reuters 2006. All Rights Reserved.