US rate on 30-year mortgage hits record 3.83 pct.

WASHINGTON (AP) — Average U.S. rates for 30-year and 15-year fixed mortgages fell to fresh record lows this week. Cheap mortgage rates have made home-buying and refinancing more affordable than ever for those who can qualify.
Mortgage buyer Freddie Mac said Thursday that the rate on the 30-year loan ticked down to 3.83 percent. That's the lowest since long-term mortgages began in the 1950s. And it's below the previous record rate of 3.84 percent reached last week.
The 15-year mortgage, a popular option for refinancing, dropped to 3.05 percent, also a record. That's down from last week's previous record of 3.07 percent.
Low mortgage rates haven't done much to boost home sales. Rates have been below 4 percent for all but one week since early December. Yet sales of both previously occupied homes and new homes fell in March.
There have been some positive signs in recent months. January and February made up the best winter for sales of previously occupied homes in five years. And builders are laying plans to construct more homes in 2012 than at any other point in past 3 1/2 years. That suggests some see the housing market slowly starting to turn around.
Still, many would-be buyers can't qualify for loans or afford higher down payments required by banks. Home prices in many cities continue to fall. That has made those who can afford to buy uneasy about entering the market. And for those who are willing to brave the troubled market, many have already taken advantage of lower rates — mortgage rates have been below 5 percent for more than a year now.
Mortgage rates are lower because they tend to track the yield on the 10-year Treasury note. Slower U.S. job growth and uncertainty about how Europe will resolve its debt crisis have led investors to buy more Treasurys, which are considered safe investments. As demand for Treasurys increases, the yield falls.
To calculate the average rates, Freddie Mac surveys lenders across the country on Monday through Wednesday of each week.
The average rage does not include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fee for 30-year loans was 0.7 last week, down from 0.8 the previous week. The fee on 15-year loans also was 0.7, unchanged from the previous week.
The average on one-year adjustable rate was 2.73 percent last week, down from 2.7 percent the previous week. The fee on one-year adjustable rate mortgages was 0.5, down from 0.6.

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US rate on 30-year mortgage rises to 3.71 pct.

WASHINGTON (AP) — Average rates on fixed mortgages rose this week, the first increase in seven weeks. But mortgage rates remain near historic lows, boosting prospects for home sales this year.
Mortgage buyer Freddie Mac said Thursday that the average rate on the 30-year loan increased to 3.71 percent. That's up from 3.67 percent last week, the lowest since long-term mortgages began in the 1950s.
The average rate on the 15-year mortgage, a popular refinancing option, rose to 2.98 percent. That's up from 2.94 percent last week, also a record low.
The rate on the 30-year loan has been below 4 percent since early December. Low rates are a key reason the housing industry is showing modest signs of a recovery this year.
In April, sales of both previously occupied homes and new homes rose near two-year highs. Builders are gaining more confidence in the market, breaking ground on more homes and requesting more permits to build single-family homes later this year.
Low rates could also provide some help to the economy if more people refinance. When people refinance at lower rates, they pay less interest on their loans and have more money to spend.
Still, the pace of home sales remains well below healthy levels. Economists say it could be years before the market is fully healed.
Many people are still having difficulty qualifying for home loans or can't afford larger down payments required by banks. Some would-be home buyers are holding off because they fear that home prices could keep falling.
The economy is growing only modestly and job creation slowed sharply in April and May. U.S. employers created only 69,000 jobs in May, the fewest in a year.
Mortgage rates have been dropping because they tend to track the yield on the 10-year Treasury note. Uncertainty about how Europe will resolve its debt crisis has led investors to buy more Treasury securities, which are considered safe investments. As demand for Treasurys increase, the yield falls.
To calculate average rates, Freddie Mac surveys lenders across the country on Monday through Wednesday of each week.
The average does not include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fee for 30-year loans was 0.7 point, unchanged from last week. The fee for 15-year loans also was unchanged at 0.7 point.
The average rate on one-year adjustable rate mortgages slipped to 2.78 percent from 2.79 percent last week. The fee for one-year adjustable rate loans was 0.5, up from 0.4.

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US fixed mortgage rates fall to new record lows

WASHINGTON (AP) — Fixed U.S. mortgage rates fell again to new record lows, providing prospective buyers with more incentive to brave a modestly recovering housing market.
Mortgage buyer Freddie Mac said Thursday that the average on the 30-year loan dropped to 3.62 percent. That's down from 3.66 percent last week and the lowest since long-term mortgages began in the 1950s.
The average rate on the 15-year mortgage, a popular refinancing option, slipped to 2.89 percent, below last week's previous record of 2.94 percent.
The rate on the 30-year loan has fallen to or matched record low levels in 10 of the past 11 weeks. And it's been below 4 percent since December.
Cheap mortgages have provided a lift to the long-suffering housing market. Sales of new and previously occupied homes are up from the same time last year. Home prices are rising in most markets. And homebuilders are starting more projects and spending at a faster pace.
The number of people who signed contracts to buy previously occupied homes rose in May, matching the fastest pace in two years, the National Association of Realtors reported last week. That suggests Americans are growing more confident in the market.
Low rates could also provide some help to the economy if more people refinance. When people refinance at lower rates, they pay less interest on their loans and have more money to spend. Many homeowners use the savings on renovations, furniture, appliances and other improvements, which help drive growth.
Still, the pace of home sales remains well below healthy levels. Many people are still having difficulty qualifying for home loans or can't afford larger down payments required by banks.
And the sluggish job market could deter some would-be buyers from making a purchase this year. The U.S. economy created only 69,000 jobs in May, the fewest in a year. The unemployment rate rose to 8.2 percent last month, up from 8.1 percent in April.
The government reports Friday on June employment.
Mortgage rates have been dropping because they tend to track the yield on the 10-year Treasury note. A weaker U.S. economy and uncertainty about how Europe will resolve its debt crisis have led investors to buy more Treasury securities, which are considered safe investments. As demand for Treasurys increase, the yield falls.
To calculate average rates, Freddie Mac surveys lenders across the country on Monday through Wednesday of each week.
The average does not include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fee for 30-year loans was 0.8 point, up from 0.7 percent last week. The fee for 15-year loans also was 0.7 point, unchanged from the previous week.
The average rate on one-year adjustable rate mortgages fell to 2.68 percent, down from 2.74 percent last week. The fee for one-year adjustable rate loans rose to 0.5 point, up from 0.4 point.
The average rate on five-year adjustable rate mortgages was unchanged at 2.79 percent. The fee stayed at 0.6 point.

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Miller, the man who ushered in free agency, dies at 95

(Reuters) - Marvin Miller, the founding chief of the Major League Baseball Players Association (MLBPA) who changed the landscape of sports by pioneering free agency for players, died on Tuesday at the age of 95, the union said.
Miller, who used the collective bargaining process and some stormy work stoppages to win players the right to become free agency along with vastly improved pensions, health benefits and pay, died at his New York home after a battle with liver cancer, the union said.
"All players - past, present and future - owe a debt of gratitude to Marvin, and his influence transcends baseball," current union head Michael Weiner said in a statement.
"Marvin, without question, is largely responsible for ushering in the modern era of sports, which has resulted in tremendous benefits to players, owners and fans of all sports.
"His legacy will live on forever."
Miller, who led the union from 1966-82, battled the club owners in the courts and at the bargaining table to eliminate MLB's long-standing reserve clause that had made players the property of the team beyond their contracts.
Through his efforts baseball players gained the freedom to sell their services in a virtually unrestricted market after satisfying an initial term of service.
Beginning in 1976, players were able to hit the open market, forever changing the way teams could build their rosters, and the success of the baseball players union fueled collective bargaining advances by unions in other major team sports.
The road to free agency and other changes did not come easily.
During Miller's tenure the players staged short strikes in 1972 and 1980 and a 50-day stoppage during the 1981 season. Owners locked out players for 17 days during spring training in 1976.
"Marvin Miller was a highly accomplished executive and a very influential figure in baseball history," MLB Commissioner Bud Selig said in a statement.
"He made a distinct impact on this sport, which is reflected in the state of the game today, and surely the Major League players of the last half-century have greatly benefited from his contributions."
Miller came to baseball after a career as a labor economist, working first for the National War Labor Relations Board and later for the International Association of Machinists, the United Automobile Workers, and the United Steelworkers.

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Yankees sign relief ace Rivera for another season

NEW YORK (Reuters) - Major League Baseball's all time saves leader Mariano Rivera has signed a one-year contract to return for his 18th season with the New York Yankees, the team said on Friday.
The Panama native tore ligaments in his left knee in May while catching fly balls in the outfield before a game and pitched in only nine games in 2012.
"I didn't want to go out like that," the 43-year-old Rivera said. "I didn't want that to be the last image."
No details were announced, but local media reports said Rivera had signed for $10 million plus incentives.
"It wasn't an easy decision because there's more than just baseball with me. I have to consider my family and the church, too," said Rivera.
"But I feel like we have a great group of guys and a team that can compete for a championship. I'm not just coming back to play. I'm coming back to win."
The right-hander, who has long baffled hitters with the deceptive, late movement on his cut fastball that bears in on left-handed batters, has 608 career saves and won five World Series titles with the Yankees dating back to the 1996 season.
A 12-time American League All-Star, Rivera's 42 postseason saves is the major league record.
His 18 seasons with the club tie him with Yogi Berra, Mickey Mantle and team mate Derek Jeter for the longest tenure at the storied franchise.

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Braves swap starter Hanson for Angels reliever Walden

(Reuters) - The Atlanta Braves borrowed from their starting rotation to boost their bullpen by trading Tommy Hanson to the Los Angeles Angels for hard-throwing reliever Jordan Walden, the Major League Baseball teams said on Friday.
Both young pitchers have shown glimmers of greatness but slipped back last season.
Hanson, 26, who broke into the majors midway through the 2009 season and went 11-4 with a 2.89 ERA, was 13-10 with a 4.48 ERA last season and has struggled to regain his velocity after enduring shoulder and back discomfort during the 2011 season.
Walden, 25, who saved 32 games for the Angels in 2011 along with a 5-5 record and 2.98 ERA, lost his closer's job last season and posted a 3-2 mark with a 3.46 earned run average out of the bullpen.
"As we looked at our young pitching, we felt like we would be able to cover our starting needs," Braves General Manager Frank Wren said. "The area we wanted to reinforce was to put another power arm in our bullpen."

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Kenyan house prices rise in Q3 on interest rate drop

NAIROBI (Reuters) - Kenya's house prices rose by 7.1 percent in the third quarter of 2012 compared to the same period last year, a real estate firm said on Wednesday, as lower mortgage rates on the back of falling interest rates spurred demand for prime real estate.
Housing has been one of Kenya's fastest growing sectors over the last decade, fuelled by a burgeoning middle class with higher disposable incomes. Returns on investments in the sector have easily outpaced those of equities and government securities.
HassConsult, a real estate firm which publishes the only regular property price index in the country, said a reduction in lending rates by commercial banks was expected to spur further growth of the property market and help support an upward movement of house prices.
"The week that the central bank dropped the rates, activity peaked up (September)," said Sakina Hassanali, marketing manager at HassConsult.
"Confidence in the property market has come back ... If the last six weeks are any clue, then the coming (quarter), so long as mortgages continue going down, we are in a better place than we were six months ago."
The central bank has cut its benchmark rate twice since July by a total of 500 basis points to 13 percent, having raised the rate to 18 percent last year to fight double-digit inflation and stabilise the shilling.
Inflation fell to 5.32 percent in September from 6.09 percent previously, having peaked at 20 percent late last year, while the shilling has largely oscillated at 85 to the dollar this year, from a record low of 107 in October last year.
The lending rates in commercial banks have dropped to about 19 percent, from as high as 30 percent earlier in the year, easing the cost of funding for both house developers and buyers.
"Even the psychological satisfaction of (investors) knowing that the rates are coming down, makes (investors) make that buying decision instantly," said Caroline Kariuki, the managing director of The Mortgage Company.
The east African nation of 40 million people has a massive housing shortage with annual demand at 250,000 units per year against a supply of 60,000 units, a World Bank study showed.
Kariuki said a steady rise of diaspora remittances to a record high of $891.1 million in 2011, had boosted development of the real estate sector, while China was singled out as one of the top foreign investors in east Africa's biggest economy.
"... We have seen (Chinese investors) getting financing at very cheap rates for their projects, so you will find that they have became significant players in Kenya," said Kariuki.
China is one of the main players in the construction of Kenya's infrastructure such as roads.

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New exhibition explores our love and hate of money

NEW YORK (Reuters) - How does money make you feel? Fearful, stressed, happy?
U.S. financial guru Suze Orman has teamed with the producer of the popular Body Worlds exhibits for a new traveling show to look at how we relate to and understand money.
Orman, media star and author of best-selling books on personal finance, described the finance-themed exhibit as "an extension of my life's work as a financial educator, and an innovative way to teach people about money".
The interactive, multi-media exhibit, "Economia: Money Matters," will begin a five-year, nationwide tour in the fall of next year, starting in Chicago. The admission-charging show will move on to other venues that include science and natural history museums.
Gail Vida Hamburg, who designed and developed the exhibition, said she hit on the idea several years ago.
"I found a study about worry, stress and depression and their links to money or rather the lack of money ... I realized that I could synthesize all of this information into a designed exhibition with multimedia and interactives (displays)," said Hamburg, who designed the Body Worlds traveling exhibition of preserved human corpses that has toured Europe, North America and Asia.
The Money Matters exhibit spans 7,000 square feet with galleries on phases of life ranging from College Road to Third Phase, or retirement. It aims to meet national and state financial literacy goals for children and adults.
Hamburg, who founded museum exhibit firm Rainworks Omnimedia in 2010, believes the show's appeal is universal because money is something that everyone has a relationship with throughout life.
Orman has described the show as a walk through the life of money, and the effect it can have on you.
"It will be entertaining," she said in a statement, "and when you're having fun learning, the lessons stay with you."
Hamburg said she addressed finance's fear factor by engaging people with various exhibits and displays.
"How do you make it easy for visitors to understand the power of compounding?" she asked, adding that it has traditionally been taught with graphs or charts or calculators.
She decided to approach it differently using visitor prompts, and entry into a computer terminal and to show the results through the growth of actual physical objects.
"We should all be so smart with money and channel our inner Suze Orman. But we're not and we don't. Unless you're an MBA or an economist or a freak, you don't want to read about SEP-IRA or social security or student loan interest rates."
The goal of the exhibition "is to give visitors the tools and resources for financial self actualization," she added.

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Analysis: Mortgage demand too much for U.S. banks, who respond slowly

(Reuters) - Big U.S. banks are hiring mortgage bankers to meet a surge in demand for home loans and refinancings, but they are still struggling to process applications, which could undermine the Federal Reserve's attempts to stimulate the economy.
Since the Fed announced its plan in September to buy up to $40 billion of mortgages a month, consumer mortgage rates have fallen more slowly and by less than they would have done in more normal times.
On average, 30-year home loan rates are down just 0.18 of a percentage point this week from September 13, when the Fed announced its latest stimulus program. Some analysts estimate that in more normal markets, rates would have fallen by roughly 0.31 of a percentage point or more. That could save a home buyer thousands of dollars over the lifetime of a mortgage.
The dysfunction in the mortgage market, which has yet to fully recover after its battering in the U.S. housing bust and subsequent financial crisis, means most benefits from the Fed's new stimulus plan may be accruing to banks instead of consumers.
Banks still committed to the home loan business are hiring to meet increased demand, but fewer banks are committed to the business after the 2007-2009 mortgage crisis pulverized some of the biggest lenders in the United States and wounded many others.
Capacity constraints work in the banks' favor. Profit margins for home lending are more than double their usual level, JPMorgan Chief Executive Jamie Dimon told investors last Friday. The major U.S. banks, including JPMorgan Chase & Co, Wells Fargo & Co and Citigroup Inc, all said mortgage operations boosted third-quarter profits.
Lenders making mortgages say they do not want to hire too many staffers only to lay them off when volume declines. The Mortgage Bankers Association estimates that banks will make $1.47 trillion of home loans this year for home purchases and refinancings, but then just $1.04 trillion in 2013, a decline of nearly a third.
"We are trying to ... not over hire," Andy Cecere, chief financial officer at U.S. Bancorp, said in an interview on Wednesday.
Top U.S. mortgage lender Wells Fargo added about 2,000 people in the third quarter as volume surged. Chief Financial Officer Tim Sloan said in an interview the bank is responding to the impact of the Fed's plan. Chase has increased its number of loan officers by 23 percent over the last year, and expects to keep hiring aggressively, said Kevin Watters, head of mortgage originations at JP Morgan Chase.
But mortgage applications are also jumping, rising nearly 17 percent in the week ended September 28. With demand that strong and no staffers to handle extra business, banks have little reason to cut rates much. In a speech on Monday, New York Federal Reserve President William Dudley acknowledged that difficulty, noting the Fed's efforts to stimulate the economy in recent years would have had a bigger economic impact if consumer mortgage rates were falling more.
Bank staffing issues are a headache for mortgage applicants already struggling with tough appraisals and wary lenders. Many borrowers tell Kafka-esque stories of bureaucracy, where what used to be a 30- to 60-day process has stretched to 90 days or more.
PROFIT BONANZA
The mortgage business has grown much more concentrated. The top two mortgage lenders made 14 percent of mortgage loans in 2000, 29 percent of mortgages in 2006, and 44 percent in the first half of 2012, according to Inside Mortgage Finance data.
Wells Fargo and JPMorgan Chase are the top two lenders now, and their predecessor companies were the top in 2000.
In 2006, Countrywide Financial Corp - now owned by Bank of America Corp - and Wells were the top. Bank of America last year stopped buying loans from other banks after suffering billions of dollars of losses from its exposure to home loans, which has cut its volume in half and limited smaller banks' capacity to lend.
Bankers are unsure how long the refinancing bonanza will last.
JPMorgan Chase CEO Dimon told investors the mortgage boom will continue "next quarter, maybe for a couple of quarters after that but it won't last for that much longer."
Citigroup Chief Financial Officer John Gerspach told investors on Monday that figuring out how long the refinancing boom will last is "one of the big questions facing a lot of institutions at this point in time."
Smaller banks are struggling with the same questions.
Matt Williams, president of Gothenburg State Bank in Gothenburg, Nebraska, and incoming chairman of the American Bankers Association, said his bank was not adding staff even though its 28 employees were "stressed to the max right now."
Williams said his bank, with $125 million in assets, expects rates eventually will go up, cutting demand for refinancing.
Mortgage demand was rising even before the Fed announced its latest plan to buy home loans, but that announcement immediately lowered bank funding costs. The effect on bank revenues will take longer to show up, because it takes months to process and close mortgage applications.
For consumers, capacity constraints among mortgage lenders mean rates are not falling as much as they theoretically could.
The average 30-year consumer mortgage rate was 3.37 percent, Freddie Mac said on Thursday - about 1.13 percentage points higher than rates investors in mortgage bonds would accept, as measured by the "secondary rate" for mortgages guaranteed by Fannie Mae.
In the second half of 2011, the gap between consumer mortgage rates and the secondary rate averaged closer to about 0.9 percentage point, suggesting lenders could cut rates another 0.23 point. However, Freddie Mac and Fannie Mae boosted fees for guarantees by 0.1 of a percentage point in August, meaning the difference may be only about 0.13 of a percentage point.

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Different challenges in Central African Rep., Mali

BANGUI, Central African Republic (AP) — Two land-locked, desperately poor African countries are gripped by rebellions in the north that have left huge chunks of both nations outside of government control. Neighboring countries are rushing troops into Central African Republic only a few weeks after rebels started taking towns but Mali's government is still awaiting foreign military help nearly one year after the situation there began unraveling. Here's a look at why there's been quick action in one country, and not in the other.
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THE INSURGENTS
The simple answer lies in the vastly different challenges faced by intervention forces. Northern Mali is home to al-Qaida-linked militants who are stocking weapons and possess stores of Russian-made arms from former Malian army bases as well as from the arsenal of toppled Libyan leader Moammar Gadhafi. The local and foreign jihadists there are digging in and training forces in preparation for jihad and to repel an invasion. Central African Republic, by contrast, is dealing with home-grown rebels who are far less organized and have less sophisticated weapons.
The numbers of troops being sent to Central African Republic are relatively small — Republic of Congo, Cameroon and Gabon are each sending about 120 soldiers. The rebels stopped their advances toward the capital on Dec. 29, perhaps at least in part because of the presence of the foreign troops who have threatened to counterattack if the rebels move closer to Bangui, the capital. In Mali, it will take far more than the 3,000 African troops initially proposed for a military operation to be successful in ousting the militants, analysts say.
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THE MISSION
The military objectives are also a stark contrast. In Central African Republic, neighboring nations have a mandate to help stabilize the region between rebel-held towns and the part of the country that is under government control. The intervention force will fire back if fired upon, but so far are not being asked to retake the towns already in rebel hands.
The mission in Mali that foreign forces are slowly gearing up for is far more ambitious. It involves trying to take back a piece of land larger than Texas or France where militants are imposing strict Islamic law, or Shariah. Making things even more complicated there: A military coup last year that created chaos and enabled the rebels to more easily take territory has left the country with a weak federal government and the country's military with a broken command-and-control structure, and with its leaders reluctant to give real power to the civilians.
"In Mali you have a very undefined mission. What does it mean to retake the country and give it back to government forces that were not able to hold it in the first place?" noted Jennifer Cooke, director of the Africa program at the Washington-based Center for Strategic and International Studies.
Central African Republic's situation "is a more limited, defined and frankly somewhat easier mission in the military sense," she said.
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THE TERRAIN
Northern Mali is a scorching desert that is unfamiliar to many of the troops who would be coming from the West African regional bloc of countries known as ECOWAS. By contrast, Central African Republic's neighbors already have been pulled into past rebellions in the country.
Chadian forces helped propel President Francois Bozize into power in 2003 and they have assisted him in putting down past rebellions here.
"These forces — particularly the Chadians — have been there before," Cooke said. "They know the players, they have an interlocutor in Bozize however fragile he is. This is familiar territory to them."
The Economic Community of Central African States, or ECCAS, also already had established a peacekeeping force in Central African Republic known as MICOPAX.
"From the beginning, they knew that they needed to have troops on the ground. MICOPAX was already there, had already been deployed there. There was already a structure in place," said Thierry Vircoulon, project director for Central Africa at the International Crisis Group.
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DIFFERING MOTIVATIONS
The rebels in Central African Republic are made up of four separate groups all known by their French acronyms — UFDR, CPJP, FDPC and CPSK. They are collectively known as Seleka, which means alliance in the local Sango language, but have previously fought one another. For instance, in September 2011 fighting between the CPJP and the UFDR left at least 50 people dead and more than 700 homes destroyed. Insurgent leaders say a 2007 peace accord allowing them to join the regular army wasn't fully implemented and are demanding payments to former combatants among other things. Rebel groups also feel the government has neglected their home areas in the north and particularly the northeast, said Filip Hilgert, a researcher with Belgium-based International Peace Information Service.
In northern Mali, the Islamist rebels are motivated in large part by religion. Al-Qaida fighters chant Quranic verses under the Sahara sun , displaying deep, ideological commitment. They consider north Mali as "Islamic territory" and say they will fight to the death to defend it. They also want to use the territory to expand the reach of al-Qaida-linked groups to other countries. This would seem to make other countries more motivated to intervene in Mali than in Central African Republic, but the challenges are so steep and convoluted that an intervention mission is still on the drawing board.

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