The Federal Reserve released its meeting minutes from the December 14^th meeting last Tuesday.  Based on the minutes we can tell there weren’t any major actions that could cause a significant change in the current New Orleans mortgage market or anywhere around the country.

The minutes are a recap of the Federal Reserve Meeting of the Open Market Committee. IT is published 3 weeks after the Open Committee adjourns. This is done eight times throughout the year.

The minutes are most similar to those that you would see at a corporate meeting. They provide details about the conversations that took place and the back and forth debates surrounding those conversations.

The Fed Minutes are a lengthy companion to the Federal Reserve’s brief, more well-known, post-meeting press release. But, whereas the press release is measured in paragraphs, the minutes are measured in pages.

Here is some of what the Fed discussed last month:

• On inflation : Core inflation levels “trend lower”; disinflation risks are low.
• On housing : The market is still “quite depressed”; demand is “very weak”.
• On stimulus : The Fed will stick to its $600 billion support plan

In response, conforming mortgage rates in New Orleans are unchanged today.

The no-change in rates is welcome news for this month’s home buyers and other people wanting to get a jump on the “Spring Buying Season”. New Orleans Mortgage rates have been trending higher since November, erasing 7 months of gains in 7 weeks, and rapidly approaching the psychologically-important 5 percent figure.

As compared to November, New Orleans mortgage rates are higher just as the rest of the country. As compared to history, however, mortgage rates remain low. If you are still floating a rate, or have otherwise not locked, your opportunity may be ending. Once the economy moves to higher gear, New Orleans Mortgage Rates will be among the first of the casualties

Due to the October 25th computer crash there have been it has been difficult in the New Orleans  Real Estate and New Orleans Mortgage markets. It was dubbed the perfect storm because three servers failed at once and the only indexes for the paper records on file were all computerized and totally wiped out. The backups were also lost because of a snag with a software update a few months before the crash.

 Clerk of Court Dale Atkins said there are two different companies who have made certain that the thousands of records that were lost in October crash were restored to searchable databases. . There are still some issues with data from last year but it seems like it is being worked on and it is expected to be fully verified in the next four weeks.

  Those who are seeking a New Orleans Mortgage have not completely missed the boat on the historically low rates but it is time to act. It is a great time to refinance or buy a new home. Mortgage Rates are low and it’s a buyers market.

There is some good news for New Orleans Home Owners who need flood insurance. The House recently passed H.R. 5114 that extends the National Flood Insurance Program (NFIP) until 2015. Over the past year it has been extended on a temporary basis with the last being in early July. The online publication Mortgage News Daily reported in a recent article that over 1200 home sales were delayed or fell through every day that there was a lapse in the program due to the fact the borrower could not get flood insurance. The flood insurance is required by New Orleans Mortgage Lenders and national lenders as well for homes located in flood areas.

Since the NFIP is the primary source of flood insurance in the US it is almost impossible to obtain this coverage when the program lapses. There are very few private insurers who offer flood coverage. The program would change somewhat under the new legislation, if it passes the Senate:

* maximum coverage limits would be raised

* some premiums and deductibles would be increased as the program attempts to recoup some of the losses taken during Katrina

* renters in flood-prone areas would receive notice of their eligibility to purchase flood insurance

Flood insurance is being purchased more and more by homeowners outside of flood zones as the severity of recent floods has often affected areas that are outside traditional risk areas. Most flood damage is not covered by traditional homeowner’s insurance and thats why almost all New Orleans mortgage lenders require borrowers to have it.

Yesterday the AP reported that Mortgage Rates had once again reached an all time low. This is the fourth such occurrence in the last five weeks. Although Mortgage Rates are at all time lows the market continues to struggle national and here in New Orleans. New Orleans Mortgage Rates as low as the national average. It was reported the refinance applications were up 7% but that really isn’t much help for the rest of housing. This is a short term surge.

In a report by Freddie Mac the national average 30 year fixed interest rate was 4.56% this week which is a decline from the 4.57% we saw last week. Since rates began being tracked by Freddie Mac in 1971 this is the lowest ever reported. In the 1950’s the U.S saw rates on fixed loans as low as 4.03% but this was for 20 and 25 year fixed mortgages.

We have seen a steady decline in rates since the spring due to fears over the European debt crisis. Investors have moved away from stocks and began putting money into the safety of Bonds, which in turn has forced the yields downs.

One would think with low rates homes sales would increase but that has yet to happen. They have actually slowed considerably since the expiration for the First Time Home Buyer Tax Credit in June. Sales of previously occupied homes fell in June and are expected to keep sinking. The National Association of Realtors said Thursday that last month’s sales fell 5.1 percent to a seasonally adjusted annual rate of 5.37 million. New Orleans home sales have slowed considerable as well.

With mortgage rates being so low and the housing market being slow it is a great time to buy. Sellers are willing to negotiate so buyers can expect to get a great deal on a home. At some point the rates will rise along with demand

Yesterday’s announcement by Freddie Mac that the national average mortgage rate for the 30 year fixed loan continues to be the lowest point in history, came as no surprise.  With these low mortgage rates national and low New Orleans Mortgage Rates it’s a opportune time for home owners in New Orleans and around the state to refinance into lower monthly mortgage payments.

This is apparent in the type of mortgage applications being filed. Freddie Mac’s chief economist noted that about 80 percent of mortgage applications have been for refinancing.

Currently at Primary Residential the 30-year fixed conventional mortgage rate continues to be at or below the national average. New Orleans Homeowners who have mortgages with higher mortgage rates stand to save a lot of money by refinancing right now.

Borrowers can possibly save hundreds each much by lowering their mortgage rate and even thousands over the life of the loan.  Now is the time to call PRMI to get a low New Orleans Mortgage Rate.

With the recent passage of the Financial Reform Bill there is expected to be big changes made nationally and locally. Some of the expected changes to how New Orleans Mortgage companies and New Orleans Mortgage bankers, offering home loans, operate is going to effect loan officer compensation. Many experts predict this will cause an artificial rise in interest rates. There will also be harsher limitations on loans that offer pre payment penalties and increased regulation of appraisers and appraisal companies. The bill is also expected to force New Orleans Lenders who offer higher risk loans to keep a five percent ownership in the loans.

The Bill Passed the Senate this passed Thursday. It passed the House earlier in the year. It is expected that the President will sign it into law in the next few weeks.  Then the job of turning the skeleton of the bill into details begins.