As you can see in the chart of the 10 year note, the long term rates have jumped pretty hard starting just before Christmas. Today the Federal Reserve's meeting notes shows their aggressive approach to normalizing interest rates. The Fed already announced they will be doubling tapering amounts ... » Learn More about Double Hit on Mortgage Rates From Fed and FHFA
Fannie Mae
2 Positives For Refinances-Elimination of .5 pt Tax and Rates Drop
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 ... » Learn More about 2 Positives For Refinances-Elimination of .5 pt Tax and Rates Drop
Supreme Court Decision Will Affect Freddie Mac and Fannie Mae Mortgages Underwriting and Fees
The US Supreme Court decided that the leadership structure of the Federal Housing Finance Agency (FHFA) violates the Constitution and the separation of powers. That gave President Biden authority to remove the agency’s head at will. Just hours after the court’s decision, the White House fired ... » Learn More about Supreme Court Decision Will Affect Freddie Mac and Fannie Mae Mortgages Underwriting and Fees
Big Changes and Flexibility On Mortgage Qualifying Coming
The Consumer Financial Protection Bureau (CFPB) just issued final rules related to the Ability to Repay portion of Qualified Mortgage (QM). This will allow for some compensating factors for qualifying for a Freddie or Fannie loan, instead of the 43% Debt to Income (DTI) ratio. This change from ... » Learn More about Big Changes and Flexibility On Mortgage Qualifying Coming
Mortgage Rates Still Great, But Two Elements Pushing Them Up
As can be seen in the chart of the 10 year note interest rates, the long-term yields of the interest curve have been trickling up over the past week. This is the part of the curve that has an effect on 30 year fixed mortgage rates. The secondary money market is looking at the economy picking up, and ... » Learn More about Mortgage Rates Still Great, But Two Elements Pushing Them Up