Fed cuts federal funds, discount rates again

The Federal Reserve today lowered its target rate for the federal funds rate to 4.5 percent and slashed the discount rate to 5 percent.

The 25-basis-point reduction in both short-term rates was less drastic than similar action the Fed took last month as a response to financial market disruption stemming from losses in mortgage lending, but was in line with many analysts' expectations.  more...

Chase gains market share on jumbo loans

JP Morgan Chase & Co. said the ability to fund jumbo loans helped its consumer banking division originate $39.2 billion in mortgages during the third quarter, a 35 percent increase from a year ago.

Many lenders who originate loans for sale in the secondary market have had to scale back production of jumbo loans, which exceed the $417,000 conforming loan limit.  more...

Refinancings hit highest level since March

Another drop in interest rates last week pushed refinancing activity to its highest level in nearly eight months, the Mortgage Bankers Association reported today.

The MBA's market composite index, a measure of total mortgage application volume, gained 3.8 percent last week on a seasonally adjusted basis from the week before, thanks to a 9.2 percent spike in the index that tracks refinancings.  more...

Home construction spending takes another hit

Although the total value of public and private construction spending ticked higher in September, spending on residential construction fell for the 19th straight month, according to data released today by the U.S. Census Bureau.

In the private sector, residential construction spending sank 1.4 percent between August and September, falling to a seasonally adjusted annual rate of $511.4 billion compared with $518.6 billion in August.  more...

PMI Group posts $87 million Q3 loss

Mortgage insurer PMI Group Inc. said Tuesday it lost $86.8 million during the third quarter as the company boosted revenue but saw paid claims, loss adjustments and reserves for losses grow to $372 million.

In U.S. mortgage insurance operations, revenues for the quarter were actually up 20 percent compared to a year ago, to $241 million, thanks to growth in net premiums written and earned.  more...

Dip in overnight real estate rates

Long-term mortgage interest rates were lower Tuesday, and the benchmark 10-year Treasury bond yield stayed at 4.38 percent.

The 30-year fixed-rate average slipped to 5.88 percent, and the 15-year fixed rate sank to 5.51 percent. The 1-year adjustable, however, was up at 5.64 percent.

The 30-year Treasury bond yield rose to 4.68 percent.

Rates and bonds are current as of 7:15 p.m. Eastern Standard Time.  more...