Reverse Mortgage Friendliness Update (2Q 2007)

Reverse Mortgage Friendliness Update (2Q 2007),

The Office of Federal Housing Enterprise Oversight (OFHEO) has released the second quarter (June 30) 2007 Housing Price Index (HPI). HPI data are collected from mortgage purchases by Fannie Mae and Freddie Mac but does not include jumbo loans.

Nationwide, the HPI shows U.S. house prices appreciated 3.2% in the second quarter of 2007 from a year before. OFHEO also said home prices rose only 0.1% in the second quarter from the first quarter, the lowest quarterly increase since 1994.

We use the HPI to compute the Reverse Mortgage Friendliness Index. This measure compares OFHEO’s rates of home value growth over five years to the average interest rate accrued on monthly-adjusting Home Equity Conversion Mortgages (HECM) - the most popular kind of reverse mortgage - for the same period. (more…)

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Written by News & Feeds on September 14th, 2007 with comments disabled.
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