Mortgage rates rise, applications remain steady

November 27, 2013

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Amid the uncertainty over the future of the Federal Reserve's stimulus spending that has allowed homeowners to get a low cost mortgage, artificially low interest rates rose slightly this week, while mortgage applications remained at the same level, according to a report by the Mortgage Bankers Association. The report revealed that mortgage applications were down 0.3 percent during the week that ended on Nov. 22 from the previous week on a seasonally adjusted basis, virtually unchanged. Similarly, the MBA's Purchase Index dropped 0.2 percent, following the same trend as mortgage applications.

The Federal Reserve has kept its quantitative easing program in place in order to allow mortgage rates to remain low. While rates are well above their historic lows of last year, they are still relatively affordable for most Americans. Once the Fed decides to taper its stimulus spending of $85 billion per month, interest rates will likely rise back toward 5 percent for a 30-year fixed-rate loan.

Mortgage rates
The MBA report comes at the same time as Freddie Mac's announcement that mortgage rates rose over the last week. For the week ending Nov. 27, rates for a 30-year fixed-rate mortgage rose from 4.22 percent to an average of 4.29 percent. During the same time last year, mortgage rates averaged 3.32 percent, a significant difference. Homeowners may be feeling the sting of higher mortgage rates and as a result, fewer borrowers are applying for home loans. 

The interest rate for a 15-year fixed rate mortgage also rose during the same week, though only slightly. For the week ending Nov. 27, the average rate rose from 3.27 percent to 3.30 percent.

"Fixed mortgage rates retraced some of their decline of the prior week as housing data portrayed mixed signals," said Frank Northaft, Freddie Mac's vice president and chief economist. "The National Association of Realtors reported that their pending sales metric dipped for the fifth consecutive month and was slightly below year-ago levels, presaging a softening in sales near yearend. Nonetheless, house prices rose as homes-for-sale inventory remained tight in many markets. The S&P/Case-Shiller House Price index released yesterday showed prices in the 20 largest cities increased 13.3 percent annually in September, the highest year-over-year increase since February 2006, and a bit stronger than the Federal Housing Finance Agency's U.S.-wide Purchase-Only index, which appreciated 8.5 percent over the same period."

Contact the Federal Savings Bank, a veteran owned bank, to explore affordable mortgage options.

How to get a mortgage with bad credit

November 27, 2013

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When it comes to getting a mortgage, most lenders look at your credit report as a means of qualification. Since the recession, lending requirements have tightened in an effort to make the mortgage market more sustainable and less likely to experience another crisis similar to 2008. For some Americans hoping to become homeowners, a bad credit score can have a negative impact on their ability to get approved for a home loan.

In an effort to boost the housing market and increase the number of homeowners, it is possible that some lenders will work with borrowers who have less than perfect credit. The terms of the loan may not be a good as someone with a better credit score, but it will still enable someone to buy a home. For example, someone with a lower credit score might have to pay higher interest rates, as the loan is considered riskier.

Improve your credit score
When applying for a loan, the first thing to do is to check your credit score and get a free report. Mistakes on your report can affect your score negatively. If you find mistakes, it is important to dispute them and get the record straight. Once you have your credit report, you should collect any supporting documents you could present to a lender that could help explain why it is lower. Mortgage lenders may be willing to approve a loan for someone who has shown strong borrowing practices in other areas besides their credit report, or if that person can explain poor practices.

FHA mortgages
Through the Federal Housing Administration, there are alternative loan options that don't require as high of a credit score. In addition, these home loans typically require a lower down payment of as little as 3.5 percent. Compared to private loans that may require a down payment close to 20 percent and a higher credit score, FHA mortgages might be a good option for some.

VA home loan
For eligible veterans, a VA home loan is a viable option for getting a mortgage. Home loans through Veterans Affairs don't have a credit requirement. Instead, qualification is based on length and type of duty. Mortgages are done through private lenders, but part of the loan is guaranteed by the VA.

Contact the Federal Saving Bank, a veteran owned bank, to explore affordable mortgage options.

FHFA announces loan limits will stay

November 26, 2013

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According to an announcement by the Federal Housing Finance Agency, loan limits by government-sponsored enterprises Fannie Mae and Freddie Macwill not be reduced next year.

Conforming loan limits backed by Fannie Mae and Freddie Mac were raised to $417,000 for most areas of the U.S. in 2008 as a result of the housing crisis. For areas like New York City and Los Angeles, where home prices and the cost of living are higher than the national average, the conforming loan limit is $625,500.

Fannie Mae and Freddie Mac were seized under government control in 2008 and now guarantee about two-thirds of all mortgages. In an effort to push borrowers back into the private market, the FHFA proposed reducing loan limits.

However, after several real estate groups, including the National Association of Realtors and the Mortgage Bankers Association, protested the changes, the FHFA has decided to keep the current lending standards. The industry groups argued that the changes would stall the recovery of the real estate market, as it would be harder for borrowers to get qualified and approved for a home loan. The changes could impact first-time home buyers the most, as they are less likely to be pre-qualified under current lending practices.

Over the summer the FHFA announced it would not reduce loan limits without a six-month warning, meaning borrowers will be able to find the same low-cost mortgages heading into 2014. The announcement isn't likely to encourage more home sales or mortgage activity, but could prevent a decline in the housing market.

"The housing market isn't going to flourish because of this announcement, but in some markets this eliminates a threat for 2014," Jaret Seiberg, a senior policy analyst with Guggenheim Securities, told Reuters. "This is broadly positive for housing, but it's not the secret cure that's going to give us a healthy market."

Contact the Federal Savings Bank, a veteran owned bank, to explore low rate mortgage options.

Home prices on the rise

November 26, 2013

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As the housing market continues to stride toward its pre-recession levels in home prices and sales, recent September reports revealed that the fast-paced momentum of the summer has slowed coming into the fall season.

September prices
According to the latest S&P/Case-Shiller Home Price Index, homes pricesincreased in the third quarter of 2013 and have steadily risen over the last year.

The report revealed home prices were up 3.2 percent in the third quarter and 11.2 percent compared to a year ago. The 10- and 20-City Composites grew 0.7 percent in the third quarter, but were reportedly up 13.3 percent from a year ago. Of the 20 cities measured in the index, 13 reported year-over-year growth rate increases. However, September appeared to be slower than other months, as 19 of the cities reported lower monthly returns. As seasonal selling comes to an end, the slowdown is not altogether a surprise.

"The second and third quarters of 2013 were very good for home prices," said Index Chairman David Blitzer. "The National Index is up 11.2 percent year-over-year, the strongest figure since the boom peaked in 2006. The 10-City and 20-City Composites year-over-year growth at 13.3 percent was their highest annual numbers since February 2006."

Sustainable slowdown
Rising home prices are a good sign for the housing market, which saw values plummet during the recession. Blitzer noted that the improvement is a balancing act between increasing home prices and sales. According to the index, home prices have returned to their 2004 levels, while homeownership has not.

"Housing continues to emerge from the financial crisis: the proportion of homes in foreclosure is declining and consumers' balance sheets are strengthening.," Blitzer stated. "The longer run question is whether household formation continues to recover and if home ownership will return to the peak levels seen in 2004."

The western states had the largest increases in home prices during the third quarter, prompting the debate of another housing bubble popping up. Fortunately, the slowdown in September could suggest that steadier and more sustainable growth will come over the next few months. In addition, home construction and sales are lower than their booming peak levels before the recession.

For borrowers, the index findings indicate that the housing market might be strong enough for mortgage rates to rise slightly. As the Federal Reserve has been artificially keeping rates low in an effort to stimulate the economy, its spending is expected to end when the market is strong enough to continue growing on its own. The price slowdown in September revealed the housing market is moving toward sustainable growth and healthier pace of recovery.

"Overall, a price slowdown is healthy, and we're seeing evidence of a slowdown in the most overheated markets but no signs of an overall price crash,'' Jed Kolko, chief economist at Trulia.com, told USA Today.

Contact the Federal Savings Bank, a veteran owned bank, to discuss affordable housing options and first-time home buyer programs.

Home sales drop slightly

November 25, 2013

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According to a recent study by the National Association of Realtors, pending homes sales continued descending in October, marking the fifth consecutive month during which home sales have declined.

The Pending Home Sales Index fell 0.6 percent to a rating of 102.1 in October. Pending homes sales in October 2012 were at an index rating of 103.8, a difference of 1.6 percent from a year ago. While the decline shows some slowdown in the housing market, the index is still above its lowest point of 101.3 in December 2012.

Part of the reason for the October decline was the government shutdown. Furloughed workers delayed several key mortgage processes as a result of the shutdown, leaving a gap in the mortgage market.

"The government shutdown in the first half of last month sidelined some potential buyers," said NAR chief economist Lawrence Yun. "In a survey, 17 percent of Realtors reported delays in October, mostly from waiting for IRS income verification for mortgage approval."

The shutdown's negative impact resulted in a lower rating. The October report was lower than what had previously been expected, Yun said.

Another factor that contributed to fewer sales was a lack of inventory in many areas of the U.S. In particular, the West Coast has been suffering from a shortage of available homes for sale on the market. As a result, home prices have risen sharply, increasing competition for first-time home buyers. There were some gains in the Midwest and Northeast in sales, by the decline in the western regions. 

2014 predictions
Inventory and affordability are likely to be an issue for homebuyers next year. However, new mortgage changes coming early next year could make it easier for borrowers to be approved for a loan for a new home purchase.

"We could rebound a bit from this level, but still face the headwinds of limited inventory and falling affordability conditions," said Yun. "Job creation and a slight dialing down from current stringent mortgage underwriting standards going into 2014 can help offset the headwind factors."

According to an earlier report by NAR, the decline in inventory has bottomed out and will most likely improve in 2014. Unless there are delays in the mortgage market cause by another government shutdown or new regulatory loan changes are implemented, borrowers will still be able to guarantee a low rate mortgage.

Contact the Federal Savings Bank, a veteran owned bank, to find out more about affordable housing options and first-time home buyer programs.

Foreclosures fall to five-year low

November 22, 2013

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Five years after the housing crisis began, the real estate market has seen significant improvement and fewer Americans are facing foreclosure. In an October report, Lender Processing Services found that foreclosures fell to their all-time low since 2008.

According to the report, loan delinquencies fell 2.8 percent in October from the previous month to a total of 6.28 percent. Compared to a year ago, loan delinquencies have declined 10.69 percent. As one major contributor holding the housing market back from reaching a full recovery, a reduced rate of delinquency is a good sign for economy.

In addition, for homebuyers looking to make a new home purchase, fewer loan delinquencies could signal that more homeowners will soon list their homes for sale. The number of homes in presale foreclosure is down almost 30 percent from last year's figure.

With rising home prices and a competitive market due to lack of inventory, more homes listed for sale would be a welcome sign for potential homebuyers. The competition between investors and regular homeowners was particularly difficult on first-time home buyers who were often beaten out by bids from all cash buyers.

Contact the Federal Savings Bank, a veteran owned bank, to explore affordable mortgage options.

Rate of underwater homes fell in third quarter

November 22, 2013

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According to data from Zillow, the number of homeowners who are underwater fell by the fastest rate ever during the third quarter of 2013.

Underwater homeowners are those that owe more on their mortgages than their home is worth. During the recession, the number of homeowners behind on their loans climbed significantly as equity plummeted when the housing bubble burst. For the housing market, the number of defaulted loans and foreclosures has negatively impacted the health and rate of recovery.

In the third quarter, underwater homes fell to just 21 percent of all homeowners with a loan. At its peak level, the number of homes underwater was 4.9 million more in the last quarter of 2012 than in the third quarter of 2013. Zillow reported the latest figure is roughly 10.8 million homes.

Recovery emerging
While the recent report is good news for the housing market and the economic recovery, there is still more work to be done, as almost 1 in five homes still remain underwater. Many housing markets across the country are experiencing a lack of inventory and foreclosed homes are holding homeowners back from selling their properties. The lack of inventory has driven prices up steeply in some markets over the last year.

According to Zillow, home prices rose by 6.4 percent in the third quarter of 2013. With price appreciation, negative home equity declined. With more home equity, fewer loans are likely to fall behind on their payments. During the same time that prices rose, 1.4 million homeowners were able to recover from negative equity. As home prices continue to rise, more mortgages are expected to improve.

"Rising home prices and a greater willingness among lenders to engage in short sales have both contributed substantially to the significant decline in negative equity this quarter," said Stan Humphries, Zillow's chief economist. "We should feel good that we're moving in the right direction and at a fast clip. But negative equity will remain a factor for years to come, and must be considered part of the new normal in the housing market. Short sales will remain a persistent feature of the market as many homeowners remain too far underwater for reasonable price appreciation alone to help."

Underwater insurance
Despite mortgage rates still near their all-time lows, many loans remain in trouble. This have given rise to a new trend of underwater insurance to fill the gap on the value of a home. If a homeowner cannot pay the full amount of their mortgage and has underwater insurance, the insurance company will pay the lender the remaining amount, according to CNBC.

For the many homeowners who are currently underwater, insurance will not be able to help. However, for first-time home buyers or those who have a new mortgage loan, underwater insurance might be able to help protect against a future foreclosure. The insurance is not designed for high-end homes worth more than $400,000.

Contact the Federal Savings Bank, a veteran owned bank, to discuss low cost mortgages.

Home buying season not over yet

November 21, 2013

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What is typically seen during the winter months in the real estate market is a sharp decrease in the number of transactions and homes sold. Prices are usually slightly cheaper than in the summer and spring too. However, this year the real estate market is still hot entering the holiday season, with buyers on the lookout for a new home purchase.

According to Realtor.com's Winter Home Buyer Report, the winter housing market is still going strong. With a lower-than-normal level of inventory of homes listed for sale, prices have been rising quickly over the last year.

"Instead of the usual seasonal slowdown, October data show the 2013 fall market moving at a fast pace," said Realtor.com's President Errol Samuelson. "Inventory has returned to last year's levels, but prices continue to strengthen and homes are moving significantly faster compared to this time last year."

Winter market trends
Home buyers during the seasonal selling months of spring and summer found themselves in an extremely competitive market with bidding wars. While some of the same trends have carried on into the winter market, fewer home buyers are searching for new properties, offering more opportunity. Many of the same buyers who were house hunting in the warmer months are still looking.

"This summer and spring homebuying season was particularly challenging for buyers, especially first-time home buyers trying to compete with all-cash offers and bidding wars because of reduced inventory," said Realtor.com's vice president of corporate communications Alison Schwartz. "In fact, a quarter of the winter home buyers revealed they are in the market now because they were unable to find a home during this last home buying season."

One of the biggest challenges for buyers in Realtor.com's report was the lack of inventory in the market, with 45 percent of respondents citing not enough inventory in their price range as an issue. Another 34 percent believed there was not enough inventory overall. Lower inventory levels have helped push home prices up over the last year. For first-time home buyers, the competitive seasonal selling was extremely difficult as bidding wars were common and all-cash offers were favored.

Buyers who are still active in the winter are mostly hoping for a better deal. However, with fewer houses available, homes that have been on the market longer are finally being sold. There is no doubt there are fewer buyers after seasonal selling has ended, but they tend to be more serious when it comes to searching for a new home in the winter.

"While buyers are still experiencing challenges with inventory and approximately one in five buyers plan to put down all cash, there are advantages to looking for a home in the winter," Schwartz stated. "Motivated sellers, better prices and less competition between buyers are some of the top reasons winter home buyers are interested in purchasing a home during the colder months of the year."

Contact the Federal Savings Bank, a veteran owned bank, to explore affordable housing options.

2014 economic predictions

November 19, 2013

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According to a recent economic outlook from Freddie Mac, the housing market is expected to shift from predominantly refinance activity to one dominated by first-time home buyers. The market shift would mark the first-time homebuyers looking to make a new home purchase account for the majority of mortgage activity since 2000.

"With the close of 2013 will also come a major transition in the housing finance industry," said Frank Nothaft, vice president and chief economist at Freddie Mac. "For the first time since 2000, we're going to see the mortgage market dominated by purchase activity as the refinance share drops below 50 percent."

Mortgage refinance activity has represented the majority of all mortgage applications as a result of lower interest rates. 

Report highlights
The economic outlook predicted that the economy would grow at a rate between 2.5 and 3.0 percent. Other estimates expect the economy to slow down slightly in the fourth quarter of 2013 before picking back up again after the new year. The Organization for Economic Co-operation and Development recently predicted that the U.S. economy would grow to just below Freddie Mac's prediction of 2.1 percent in the fourth quarter. For next year, the OECD estimated that U.S. gross domestic product would grow by at least 3 percent.

Freddie Mac's predictions also suggested that interest rates would rise throughout 2014 up to the 5 percent range for a 30-year fixed rate mortgage. While homebuyers have been enjoying low cost mortgage options over the past year while rates have remained near record lows, most housing markets are expected to remain affordable next year. Higher rates will end up strengthening the mortgage market as home prices and sales will reach sustainable levels of growth.

"And with mortgage rates rising, we're also going to see the home-sales gains as well as the impressive house price growth begin to moderate to more sustainable levels," Nothaft stated.

Home values will continue to appreciate, but at a more moderate pace between 5 and 6 percent. Multi-family property investments are expected to rise next year at a rate comparable to the early 2000s. 

Multifamily production report
The National Association of Homebuilders appeared to agree with Freddie Mac's predictions, as the most recent Multifamily Production Index revealed that builders remained positive in their outlook on the multifamily housing market. Despite falling slightly, the index score was above 50 points for the seventh consecutive quarter, indicating the more homebuilders believe conditions are improving.

"Multifamily developers remain positive about where the market is right now, despite the dip in the index," said Dean Henry, NAHB's Multifamily Leadership Board chairman and CEO of Legacy Partners Residential. "There are challenges still facing the industry such as availability of labor and rising cost of some building materials, but the demand for apartments and condos is strong enough for developers to proceed in most markets."

Contact the Federal Savings Bank, a veteran owned bank, to find out more about low rate mortgage options.

Fed official declares economy looks better

November 18, 2013

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After the surprisingly positive October jobs report was released on Nov. 8, debate over when the Federal Reserve will begin to taper its stimulus program known as quantitative easing has been brought forward.

William Dudley, Federal Reserve New York Bank president, stated that he is more hopeful about the economic recovery.

"There are some nascent signs that the economy may be doing better," Dudley told Bloomberg.

The economy grew at a rate of 2.8 percent in the third quarter of 2013, more quickly than the 2.5 percent growth recorded in the second quarter. The increase is a good sign that factors previously holding economic growth back are beginning to subside. According to the Department of Labor, 204,000 jobs were added to the economy in October. Fed officials have stated the economy needs to recover at a rate of 200,000 jobs or more every month before the bank will reduce quantitative easing.

With Dudley stating his optimism, it is more likely the Central Bank will begin to reduce spending next month rather than later in 2014. CNBC reported that the last time Dudley made a public statement he adamantly agreed the economy needed more help from the Federal Reserve. For homebuyers, the bank's decision will have an effect of mortgage interest rates.

Contact the Federal Savings Bank, a veteran owned bank, to explore affordable mortgage options.

Veterans cite homeownership as top priority

November 15, 2013

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According to a recent report by Century 21, homeownership is among the most important things for veterans returning from duty and is also the biggest issue they face. Three quarters of military families in the survey said homeownership is very meaningful to servicemen and women. The reasons homeownership was so important varied, but 73 percent said the significance is from the desire to have their own home. Establishing a household was important for 43 percent of families and 36 percent cited financial security.

"Home ownership is a top priority for many, but is especially significant to those returning from a tour of duty," said Century 21 President and CEO Rick Davidson.  "Veterans have done so much to serve our country."

While it is clearly on the forefront of the minds of veterans, homeownership is also elusive for many of them. According to the report, only 33 percent of military families have looked for a residence to purchase.

"As military service members return from duty and transition to civilian life, one significant hurdle is securing a place to call home," said James Williams, president and CEO of Century 21's Easter Seals services.

Most families stated that service-members faced many obstacles upon returning home that have prevented them from purchasing property. Despite VA home loan options, rising prices was a problem for 36 percent of veterans. Coming up with the upfront amount for a down payment was an issue for 31 percent and 28 percent cited personal savings as the reason they couldn't buy a home.

For veterans, not being able to make a new home purchase after active duty can be a distressing reality. With mortgage rates remaining low, there are several mortgage options available for new homebuyers.

Contact the Federal Savings Bank, a veteran owned bank, to explore VA home loan options for eligible veterans.

Quantitative easing five years later

November 15, 2013

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When the recession hit, the Federal Reserve took action on Black Friday 2008 to stimulate recovery and allow homebuyers access to a low rate mortgage. Now, with stimulus spending potentially winding down soon, how have the efforts of the Central Bank improved the economy and the housing market?

Without a doubt, the job market is better off now than it was a year ago, according to the American Enterprise Institute. But is this due to steps taken by the Federal Reserve? According to The Washington Post, the civilian labor force - which excludes government workers and military personnel - 62.8 percent of Americans have a job, down from 66 percent in 2007. Today's percentage represents the lowest level since 1978. The October jobs report showed some improvement, with 204,000 jobs added to the economy during the month, according to the U.S. Department of Labor. Fed officials have stated the economy needs to recover at a rate of at least 200,000 jobs added per month before it will begin to taper quantitative easing spending.

Has quantitative easing been successful?
As uncertainty surrounds the future of the Federal Reserve's stimulus program of $85 billion in monthly bond purchases, the question of whether or not the efforts have been successful in improving the economy is being debated.

"I think the real issue is that the Fed has expanded its tool kit so dramatically, and really there are some real questions as to how potentially it unwinds, when it unwinds," Andrew Huszar, a former official with the Fed, told CNBC. "We saw this past summer there was this announcement of potentially a taper and the markets actually tanked, and after that the Fed backpedaled. What's going to happen if we go on for months, years longer?"

Huszar continued to question the effectiveness of quantitative easing, stating in a Wall Street Journal Op-Ed that he was "sorry" the program had grown so large and gone on for so long. Five years ago, quantitative easing began with main intention of easing credit conditions for homeowners and businesses. In fact, Fed Chairman Ben Bernanke originally called the program "credit easing," according to Huszar.

Housing market conditions
However, a recent report by the Mortgage Bankers Association has shown that mortgage applications have declined over the past few weeks. For the week that ended on Nov. 8, the MBA Weekly Survey revealed that mortgage activity fell 1.8 percent from the previous week.

In addition, interest rates for a 30-year fixed-rate mortgage increased slightly last week to 4.44 percent, up from the previous average of 4.32 percent. Rates for jumbo loans - loans that exceed $417,000 - also increased to 4.48 percent from 4.37 percent. The adjustable-rate mortgages, which typically offer low introductory rates for the beginning of the loan terms, increased to account for 7 percent of applications. With higher rates for fixed mortgages, it's no surprise borrowers are opting for ARMs.

One direct result of quantitative easing is that mortgage rates have remained near historic lows for several months in a row. Falling to around 4 percent in October after the Fed made the announcement it would delay tapering, interest rates and mortgage refinance rates are still low relative to normal conditions. It is certain that rates will rise once tapering does begin.

"We've had four straight months of slowing in mortgage applications," said Gina Sanchez, a contributor to CNBC. "However, there is still demand in the market. If you look at interest rates, even though they are rising, they're still low historically.

Contact the Federal Savings Bank, a veteran owned bank, to find out more about different mortgage options.

Homes sold faster in October

November 14, 2013

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Homes are spending less time on the real estate market compared to a year ago, according to Zillow. For first-time homebuyers, this has created more competition. Zillow reported that homes were spending an average of 86 days on the market in October, compared to 119 a year ago. The October figure represents the quickest selling pace since Zillow began tracking in 2010.

"The declining inventory of for-sale homes over the past year naturally creates pressure for buyers to more quickly snap up the inventory that is on the market," said Stan Humphries, chief economist at Zillow. "This demand has been fueled by huge resets in home prices since market peak, historically low mortgage rates and a slowly improving broader economic climate."

Current market
Humphries attributed homes going off the market sooner to improved economic conditions such as low rate mortgages. Until the Federal Reserve decides to reduce stimulus spending that has helped keep mortgage rates low, homebuyers will be able to get a loan near historic low costs.

In fact, more Americans seem to be making the push to buy before the Fed makes its decision, as the Mortgage Bankers Association Builders Applications Survey revealed that new home purchase applications increased 11 percent in October, Mortgage News Daily reported. Compared to the previous month, more homeowners applied for a loan for new home construction.

In addition, the average size of a home loan increased from September's amount of $289,650 to $294,480 in October. This may be in response to higher home prices across the country. California seemed to be driving the housing market recovery compared to other states, with San Jose the leading metro area for the pace of home sales. According to Zillow, homes in San Jose stayed on the market for an average of 43 days in October. Of the top three states with more new home purchase applications, California was third, reporting an increase of 4.6 percent over September.

While both these reports reveal good signs for the housing market recovery, mortgage rates are expected to rise next year, which could slow the pace of sales. According to CNBC, interest rates for a 30-year fixed rate mortgage have already risen as rumors that the Federal Reserve may soon be tapering quantitative easing have surfaced.

Contact the Federal Savings Bank, a veteran owned bank, for first-time home buyer loans.