As I conveyed in a previous blog in June, the FHFA was being pushed by mortgage trade groups to eliminate an “Adverse Market Fee” on .5 point on conforming refinances. This was a hidden tax on the consumer that increased the cost of a refinance $2500 in additional costs to a $500,000 loan, or around 1/8% to the rate. This tax was removed last Friday July 16. So any conforming refinance that is newly originated or it’s rate floating will not have this tax. Loans that were already locked “may” have the tax removed, but that depends on the lender and the secondary money market. This tax was not applicable to any Jumbo, or Non-Qualified Mortgage loan.
The interest rates recently peaked in March, were flat and in a trading range till the end of May, then they started dropping. At first, it was the financial markets reacting to the Federal Reserves statements applicable to inflation, but now it’s reacting to the perception that the Post Pandemic economic reopening may be affected negatively because of the new surge of Covid transmissions.
If you are in the Los Angeles area, have any questions or real estate sales or financing needs, feel free in contacting me
Ron Henderson GRI, SRES, SFR, RECS, CIAS
President/Broker
Multi Real Estate Services, Inc.
Gov’t Affairs Chair – California Association of Mortgage Professionals (2017-2018)
Chairman – OutWest Marketing Meeting (Real Estate Education)
BRE #00905793 NMLS #310358
www.mres.com
ronh@mres.com
Specialist in the Art of Real Estate Sales and Finance
Real Estate market, mortgage rates, Los Angeles, San Fernando Valley, Conejo Valley, Simi Valley, Woodland Hills, West Hills, Calabasas, Chatsworth
Leave a Reply