This Week's Reverse Mortgage Rates: November 10, 2009

This week’s reverse mortgage rates are below. These rates are effective for the week beginning November 10, 2009.

APR:

HECM LIBOR 225: 2.492

HECM LIBOR 250: 2.742

HECM LIBOR 275: 2.992

HECM LIBOR 300: 3.242

Expected Rates:

HECM LIBOR 225: 5.90

HECM LIBOR 250: 6.15

HECM LIBOR 275: 6.40

HECM LIBOR 300: 6.65

The HECM LIBOR APR remained almost unchanged for the seventh consecutive week. This week, the expected rates remained nearly unchanged as well, with a one hundredth of a point decline. It is interesting to see the HECM LIBOR APR remain constant for so long, a phenomenon that has not occurred since  August 2008.

 

This Week's Reverse Mortgage Rates: November 3, 2009

This week’s reverse mortgage rates are below. These rates are effective for the week beginning November 3, 2009.

APR:

HECM LIBOR 225: 2.494

HECM LIBOR 250: 2.744

HECM LIBOR 275: 2.994

HECM LIBOR 300: 3.244

Expected Rates:

HECM LIBOR 225: 5.91

HECM LIBOR 250: 6.16

HECM LIBOR 275: 6.41

HECM LIBOR 300: 6.66

The HECM LIBOR APR remained almost unchanged for the sixth consecutive week. However, the expected rates continued to rise. This week saw a dramatic increase by .08 for the borrowers.  It will be interesting to see when the APR finally changes, and, when it does, whether the expected rates will adjust is the same direction.

 

Reverse Mortgage Volume Down 6%

Reverse mortgage volume has declined 6.03% year on year for the month of November.

In November 2007, HUD endorsed 8,270 reverse mortgages compared to 7,771 in November 2008.

This decline comes despite that fact that many borrowers waited until November to close because of the new higher lending limits that went into effect in the last month.

The news came as no surprise to Alesia Fisher, Vice President of Equitable Reverse, who said in an interview, “Given the overall weakness in the economy and uncertainty, I’m surprised that the decline wasn’t even larger.”