With an announcement from the Federal Reserve to come, we have a big week ahead of us. Let’s cover this week’s latest news from the mortgage industry.
Despite their recent slight decline, mortgage rates rose last week along with rising Treasury yields. Even so, rates are still relatively stable, especially with the war in Ukraine being the driving factor behind market declines and volatility in recent weeks. This offshore uncertainty will likely continue to affect short-term mortgage rates until some form of compromise is found.
Of course, that doesn’t mean rates will stay where they are forever. Record inflation in 2022 signaled the Federal Reserve to accelerate its tapering of asset purchases and begin raising interest rates. A significant rate hike is expected to be announced this week when the Fed meets tomorrow, March 15 and March 16. Depending on how things go, we’re likely to see rate increases on all products, not just mortgages.
For now, be sure to keep an eye out for an announcement from the Federal Reserve. Follow us online for the latest information and contact your Total Mortgage Loan Officer so you can act quickly if further increases are announced.
Older, but still important news
Let’s review some older industry news that has affected buyers since the start of this year.
- In early February, the Federal Housing Finance Agency (FHFA) lifted its restrictions on borrowers with self-employment income. These were initially put in place in response to the pandemic but have since been removed, providing borrowers with greater opportunities in an already competitive market. The same credit and income requirements may apply, but home financing is now generally more accessible to the self-employed.
- The Federal Housing Finance Agency (FHFA) has announced upcoming fee increases (effective April 1, 2022) for certain Fannie Mae and Freddie Mac home loans. These increases will ultimately depend on the loan-to-value ratio of each product. “High balance” loans are considered to be any that exceed the compliant base limit introduced on January 1.
To learn more about any of these recent developments, contact your Total Mortgage Loan Officer today.
The immediate future for our industry points to higher mortgage rates across the board as we continue to return to pre-pandemic levels. The war in Ukraine has kept rates stable since it started, but the Fed has indicated that this is unlikely to prevent them from raising rates this year. Higher rates mean lower affordability for the average buyer, so it’s important to act early if you’re house hunting. Contact a Total Mortgage Loan Officer to start now.
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