More homeowners refinancing into shorter loans: survey (Reuters)

NEW YORK (Reuters) – More homeowners prefer to pay off their mortgages sooner as interest rates have stayed near rock-bottom and weak labor conditions have caused them to reduce their debt loads, a survey showed on Monday.

The current trend in refinancing into shorter-loan terms is a stark contrast to the one during the height of the housing boom, when families were taking out bigger mortgages against the rising values of their homes.

Of those homeowners who refinanced a 30-year fixed-rate mortgage during the second quarter, 37 percent moved into a 15-year or 20-year fixed-rate loan. This is the highest since the third quarter of 2003, mortgage finance agency Freddie Mac (FMCC.OB) said.

In the second quarter, interest on the 30-year mortgage averaged 4.65 percent, compared with a 3.84 percent average on 15-year mortgages, the company said.

"It's no wonder we continue to see strong refinance activity into fixed-rate loans," Freddie Mac Chief Economist Frank Nothaft said in a statement.

Refinancing has comprised the bulk of U.S. mortgage activity since the housing bust that led to the 2007-2009 global financial crisis.

During the second quarter, the refinance share of mortgage applications, versus the share of applications for loans to buy a home, averaged 70 percent, Freddie Mac said.

(Reporting by Richard Leong; Editing by Dan Grebler)

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British house prices rise in June: survey (AFP)

LONDON (AFP) – British house prices rose by 1.2 percent in June from the level in May, data from a major home-loans provider showed on Wednesday.

However they slumped by 3.5 percent in June compared with 12 months earlier, according to figures from mortgage lender Halifax.

"Low interest rates, an increase in the number of people in employment and some tightening in market conditions earlier in the year are likely to have been the main factors behind the recent improvement in price trends," Halifax housing economist Martin Ellis said in a statement.

"The market is, however, likely to continue to face significant headwinds which are expected to constrain housing demand. Low earnings growth, higher taxes and relatively high inflation are all continuing to put pressure on household finances," he added in a statement.

Halifax, which is part of state-rescued Lloyds Banking Group, said the average house price in Britain stood at £163,049 (181,733 euros, $261,147) in June.

The Bank of England is expected to keep its key interest rate at a record low level of 0.50 percent on Thursday and maintain the status quo into next year due to Britain's flagging recovery, according to economists.

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British house prices slip in February: survey (AFP)

LONDON (AFP) – British house prices slipped by 0.9 percent in February, offsetting a modest gain in January, data from a top home-loans provider showed on Friday.

"There has ... been little change in house prices over the first two months of 2011 as a whole. February's monthly decline of 0.9 percent offset January's 0.8-percent gain," said Halifax housing economist Martin Ellis.

"Overall, we expect a modest 2.0-percent decrease in house prices in 2011. Uncertainty over the economic outlook is likely to weigh down on housing demand this year."

Halifax, part of state-controlled Lloyds Banking Group (LBG), said the average house price in Britain stood at £162,657 (189,226 euros, $264,257).

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