Happy Friday the 13th! Here’s the interesting mortgage news from this week:
Mortgage Rates Are Climbing
Mortgage rates climbed for the second straight week amid anticipation of a Federal Reserve interest rate hike and a strong jobs report, mortgage provider Freddie Mac said Thursday. The 30-year fixed-rate mortgage averaged 3.98% in the week ending Nov. 12, up from 3.87%. The 15-year fixed-rate mortgage averaged 3.20%, up from 3.09%. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.03%, up from 2.96%, and the 1-year Treasury-indexed ARM averaged 2.65%, up from 2.62%.
When will the Fed raise interest rates anyway?
LoanDepot Postpones IPO
Mortgage lender LoanDepot has postponed its plans for an initial public offering following concerns over the pricing environment in the public markets.
LoanDepot, which has swiped market share away from traditional banks, “decided to withdraw from pursuing an IPO at this time due to market conditions,” spokesperson Julie Reynolds said in an email.
LoanDepot, like Quicken Loans, is a mortgage bank rather than a traditional bank. They’re largely known for buying mortgage leads from consumers shopping for home loans on the Internet. It’ll be interesting to see what happens with this one.
Mortgage Schemes Just Don’t Pay
A former Boston real estate developer from Mansfield is now serving an 11-year prison sentence for orchestrating what federal prosecutors say was one of the largest residential mortgage scams perpetrated in state history.
Michael David Scott, 51, of 40 Old Stable Drive, in Mansfield, was also ordered to pay almost $11.4 million in restitution and forfeit $7.4 million. He will also be on probation for five years after his release from prison, according to the U.S. Attorney’s office.
Using a Reverse Mortgage for Retirement Planning
Strategic use of a reverse mortgage can improve retirement outcomes. The benefits are non-linear in nature, as they relate to the synergies created by reducing sequence risk for portfolio withdrawals and to the non-recourse aspects of reverse mortgages that can potentially allow a client to spend more than the value of their home. This article explores six different methods for incorporating home equity into a retirement income plan through the use of a reverse mortgage.
We’ve been extolling the virtues of reverse mortgages for years. Click here to learn about many of the top rated reverse mortgage lenders.