The largest provider of U.S. residential funding, Fannie Mae, cut its forecast for residential investment this quarter following a “setback” in home sales and cautioned on its impact on the economic recovery.

With reference to its monthly outlook, Fannie Mae also cut its forecast for 2010 mortgage originations for a second month. Residential investment is likely to drop 17.2 percent in the first quarter and rebound for the rest of 2010, Fannie Mae economists, led by Doug Duncan, said in their outlook.

For all of 2010, residential investment will grow 10 percent, slightly below the previous forecast, they said. Severe weather interrupted activity in the first two months of 2010, while the…

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed rate mortgage (FRM) averaged 4.95 percent with an average of 0.7 point for the week ending March 11, 2010; it was down from last week when it averaged 4.97 percent. While last year at the same time, the 30-year FRM averaged 5.03 percent.

The 15-year FRM this week averaged 4.32 percent with an average 0.7 point that was down from last week when it averaged 4.33 percent. A year ago at this time, the 15-year FRM averaged 4.64 percent.

The 5-year Treasury-indexed fusion adjustable-rate mortgage (ARM) averaged 4.05 percent this week, with an average…

The government is giving homeowners another year to refinance their loans under a little-used program designed to help borrowers whose homes have fallen in value.

According to the Federal Housing Finance Agency, the Obama administration’s Home Affordable Refinance Program had been scheduled to end on June 10, 2010 but will now run until June 30, 2011.

The program allows borrowers who are indebted up to 25 percent more than their homes are worth to refinance to lower interest rates. It was initially projected to help 4 million to 5 million homeowners with loans owned or assured by Fannie Mae and Freddie Mac. So far, it has helped around 220,000, according to the…