Apache is functioning normally

With an announcement from the Federal Reserve coming soon, we have a big week ahead of us. Let’s cover the latest in this week of mortgage industry news.

Rates Update

Despite their small, recent declines, mortgage rates rose last week in parallel with rising Treasury yields. Even so, rates are still relatively stable – especially with the Ukraine war as a driving factor for decreases and market volatility these past few weeks. This uncertainty overseas will likely continue to affect mortgage rates in the short term until some form of compromise is reached.

Of course, this doesn’t mean that rates will remain where they are forever. Record-high inflation in 2022 has signaled the Federal Reserve to ramp up its tapering of asset purchases and begin raising interest rates. A significant rate hike is expected to be announced this week when the Fed convenes tomorrow, March 15, and March 16. Depending on how things develop, we’ll likely see rate increases to products across the board – 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 cover some older industry news that has affected buyers since the start of this year.

• At the start of February, the Federal Housing Finance Agency (FHFA) lifted its restrictions on borrowers with self-employment income. These were originally put in place in response to the pandemic but have since been removed, offering borrowers greater opportunities in an already competitive market. The same credit and income requirements may apply, but home financing is now generally more accessible for the self-employed.

• The Federal Housing Finance Agency (FHFA) announced upcoming fee increases (effective April 1, 2022) for certain Fannie Mae and Freddie Mac home loans. These increases will ultimately depend on each product’s loan-to-value ratio. “High-balance” loans qualify as any that go above the conforming baseline limit introduced on January 1.

To learn more about any of these recent developments, contact your Total Mortgage loan officer today.

In Closing

The immediate future of our industry points to higher mortgage rates across the board as we continue our return to pre-pandemic levels. The Ukraine war has held rates steady since it began, but the Fed has indicated that this likely won’t steer them from their course of raising rates this year. Higher rates mean lower affordability for the average buyer, so it’s important to act sooner than later if you’re in the market for a home. Contact a Total Mortgage loan officer to get started now.