Blog Posts by Elizabeth Trotta

Mortgage rates fell to fresh lows last week as worries about the strength of the economic recovery dragged Treasury yields further down. Housing continues to be a hard market to call with more economists and market watchers taking a bullish stance this week, persuaded by promising highlights in another batch of mixed data.

[Click here to find mortgage rates in your area.]

The 30-year fixed mortgage rate hit 3.49% and the 15-year dropped to 2.8%, according to data from Freddie Mac. Those figures are down from 3.53% and 2.83%, respectively, the week prior. The 30-year rate is now more than 1% lower than a year ago, when it averaged 4.55%. (Track the rate in the chart below.)

That's not lost on homeowners looking to refinance. Mortgage application volume ticked 0.9% higher, according to an index from the Mortgage Bankers Association, while the Refinance Index increased 2% from the previous week to its highest level since April 19, 2009. The refinance share of mortgage activity increased

Mortgage rates continue to test new depths, with the 30-year fixed rate hitting 3.53%, down from 3.63% the week prior, according to Freddie Mac. The fixed-rate 15-year mortgage also hit a new all time low, touching 2.83%, down from 2.86% the week prior.

[Click here to find mortgage rates in your area.]

"With little signs of inflation and the Federal Reserve's 'Operation Twist' keeping U.S. Treasury bond yields in check, fixed mortgage rates are remaining low and helping to stir the housing market," said Frank Nothaft, vice president and chief economist, at Freddie Mac.

As rates continued to fall, mortgage demand increased last week. Mortgage application volume jumped 16.9% from one week earlier, according to data released on Wednesday by the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending July 13, 2012. The Refinance Index increased 22% from the previous week and is at the highest level since mid-June, after falling 3% the week prior. Mike

Mortgage rates fell to new record lows, yet again, last week. The 30-year fixed rate hit 3.56% and the 15-year fell to 2.86% as U.S. Treasury bond yields eased after a disappointing jobs report for June.

[Click here to find mortgage rates in your area.]

The average 30-year rate has now been below 4% for 16 weeks. The low rates look better and better for those who aim to refinance, qualify and aren't stuck in bank backlog. Unfortunately, conditions have prevented many homeowners from taking advantage.

While changes in government programs boosted refinancing activity earlier this year, application volume hasn't exactly been impressive. Earlier in the week, the Mortgage Bankers Association said its market composite index, an indication of application volume, fell 2.1% last week, after declining 6.7% the week prior. The Refinance Index decreased 3% from the previous week.

As the housing bulls and bears debate whether a bottom is in, imminent or nowhere in sight, supply may be due for a

It continues to get better for potential home buyers and those who are interested in refinancing and are able to take advantage of low rates (and not get caught up in bank backlog). Mortgage rates hit a new low again last week, according to the latest data from Freddie Mac.

The 30-year mortgage rate fell to 3.62%, down from 3.66% a week prior. It marked the 10th of 11 weeks in which the average 30-year fixed-rate mortgage rate has matched or hit a new record low. The 15-year fixed rate also fell last week, averaging 2.89%, down from 2.94% a week prior.

[Click here to find mortgage rates in your area.]

For perspective, one year ago, the 30-year and 15-year rates stood at 4.6% and 3.75%, respectively. 

Frank Nothaft, vice president and chief economist at Freddie Mac, pointed to recent lackluster data on consumer spending and a contraction in the manufacturing industry that drove Treasury bond yields lower in the past week and added new pressure to mortgage rates.

The rates follow a

The city of Stockton, Calif., is teetering on the edge of insolvency. According to reports, a string of failed debt negotiations over the last few days mean the city is preparing to file for bankruptcy protection, possibly this week.

Mammoth Lakes, Calif., is in the same mediation process that Stockton used -- a process that has come under challenge. The phenomenon isn't new to California, where in 2008, Vallejo filed. The anticipated Stockton filing would dethrone Vallejo as being the largest California city ever to file for bankruptcy.

For perspective, in the most recent census, Vallejo had a population of 115,942, while Stockton, the state's 13th largest city, had 291,707 residents.

Although California is a repeat offender, municipal bankruptcies aren't regional.  If Stockton and Mammoth Lakes ultimately do file, they would follow Central Falls R.I., and Jefferson County Ala., which sought bankruptcy protection last year.

Other close calls include Harrisburg, Pa., and Boise County,

The main themes that we've watched play out recently on the Greek stage will be discussed on a bigger stage this week as finance ministers from 20 of the world's largest economies -- the G-20 -- meet in Mexico.

The G-20 leaders are expected to push Europe for stronger action to stymie the risk of contagion. But exactly how to do that -- through more austerity to stop the bleeding or through more spending to encourage growth -- remains a point of contention.

The Greek election on Sunday put at bay the most immediate concerns that Greece would be exiting the euro, dropping the bailout plans in an effort to go it alone. The euro zone as everyone knows it survived another day, but the Greek government is now tasked with the same tasks it failed to complete -- including the very first step, forming a coalition government -- just weeks ago.

Current System Isn't Working

Although the so-called "pro-bailout" group, the New Democracy Party, won the most Parliamentary seats of any party in the

Debt is on everyone's mind. Whether it's student loans, mortgages, credit card debt, or the national debt, the amount and the consequences have stirred a frenzy of fear and ire. Consumers struggling with unsustainable debt levels clearly can't be long-term drivers of spending, a key component to our economic recovery. In short, the sooner they pay down excessive debt, the sooner healthy (and, let's hope, responsible) spending will pick up.

The perhaps-surprising good news: "Domestic — public and private — debt as a share of the economy has declined for 12 quarters in a row after surging over the previous decade," writes MarketWatch columnist Rex Nutting, who points out that U.S. household debt has fallen to 84% of GDP from a peak of 98%.

The Federal Reserve said last Thursday that the growth of consumer debt slowed in April, and that revolving credit, which includes credit-card debt, decreased by $3.44 billion in April to $862.29 billion.  Credit card debt has ballooned into a daunting