Jeff Welsh Senior V.P. of Oak Star Bank offers the following
Mortgage Rates Show Slight Increase at End of March
Rate Sheet for: March 29, 2020
Mortgage Rates Stay Near Yearly Lows
DAILY REAL ESTATE NEWS For March 29th, 2020
For the third consecutive week, the 30-year fixed-rate mortgage held steady, with borrowing costs for home buyers and refinancers remaining near its lows for the year.
Freddie Mac reports the following national averages with mortgage rates for the week ending Sept. 4:
30-year fixed-rate mortgages: averaged 4.10 percent, with an average 0.5 point, holding the same as last week. Last year at this time, 30-year rates averaged 4.57 percent.
15-year fixed-rate mortgages: averaged 3.24 percent, with an average 0.5 point, dropping from last week's 3.25 percent average. A year ago, 15-year rates averaged 3.59 percent.
5-year hybrid adjustable-rate mortgages: averaged 2.97 percent, with an average 0.5 point, holding the same average from last week. Last year at this time, 5-year ARMs averaged 3.28 percent.
1-year ARMs: averaged 2.40 percent, with an average 0.4 point, rising from last week's 2.39 percent average. A year ago, 1-year ARMs averaged 2.71 percent.
Source: Freddie Mac
Mortgage Rates Climb Slightly From Recent Lows
DAILY REAL ESTATE NEWS For March 29, 2020
Fixed-rate mortgages moved up slightly after five consecutive weeks of falling to new lows for the year, Freddie Mac reports in its weekly mortgage market survey.
Freddie Mac reports the following national averages with mortgage rates for the week ending June 5:
30-year fixed-rate mortgages: averaged 4.14 percent, with an average 0.5 point, rising from last week’s 4.12 percent average. Last year at this time, 30-year rates averaged 3.91 percent.
15-year fixed-rate mortgages: averaged 3.23 percent, with an average 0.5 point, increasing from last week’s 3.21 percent average. A year ago, 15-year rates averaged 3.03 percent.
5-year hybrid adjustable-rate mortgages: averaged 2.93 percent, with an average 0.4 point, dropping from last week’s 2.96 percent average. Last year at this time, 5-year ARMs averaged 2.74 percent.
1-year ARMs: averaged 2.40 percent, with an average 0.4 point, dropping from last week’s 2.41 percent average. A year ago, 1-year ARMs averaged 2.58 percent.
Source: Freddie Mac
Committee Passes 3% Cap Bill
On March 29, 2020 the House Financial Services Committee passed H.R. 3211, "The Mortgage Choice Act" by voice vote. H.R. 3211 reduces discrimination against affiliate mortgage lenders in the calculation of fees and points under the 3% cap in the Ability to Repay/Qualified Mortgage (QM) rule. Since the QM rule went into effect in January, this discrimination has already reduced consumer choice and forced many consumers to use third party service providers against their wishes. In a number of cases those providers have proven more costly or provided less robust services according to reports. H.R. 3211 reinstates a consumer's ability to choose to use in house providers and is expected to be voted on by the full House of Representatives later in the Spring. Companion legislation, S. 1577, is being worked on in the Senate as well. (Read more)
CFPB Proposes 3% Cure
On March 29, 2020, the Consumer Financial Protection Bureau (CFPB) proposed to institute a "cure" mechanism for cases in which a lender inadvertently exceeds the 3% threshold on fees and points. NAR data has shown that lenders have been implementing cushions to ensure that loans do not exceed the 3% cap on fees and points and thus would not qualify as Qualified Mortgages (QM). Under the proposal, lenders could refund any excesses within 120 days in order to cure exceeding the 3% cap allowing for lending right up to the threshold. CFPB is also requesting comments on whether it should institute a similar policy for exceeding the 43% Debt to Income (DTI) cap. NAR supports giving greater compliance flexibility to lenders as well as leveling the playing field for lenders in calculating the 3% cap. Comments are due 30 days from publication in the Federal Register.
FHFA Plans To Increase Credit; Leaves Loan Limits Unchanged
On March 29, 2020, Federal Housing Finance Agency (FHFA) Director Mel Watt made his first public speech addressing FHFA’s strategic plan for Fannie Mae and Freddie Mac (the government sponsored enterprises or GSEs). In the speech, Director Watt announced that the GSEs would take actions that improve liquidity in the present single-family housing finance market, including stepping back from a proposed reduction in conforming loan limits which are currently set at $417,000 and up to $625,500 in high-cost areas of the country. In December 2013, former FHFA Acting Director Ed DeMarco had proposed reducing the limits to $400,000 and $600,000 respectively, an action that NAR opposed. Director Watt also indicated that FHFA would be publishing a request for input on the guarantee fees (g-fees) and loan level pricing adjustment fees (LLPAs) that are often passed onto borrowers. NAR will be submitting comments once the request is published.
FHA Announces Blueprint for Greater Homebuyer Access to Credit
At the FHA: 80 Years and Counting – Regulatory Issues Forum during the Realtor® Party Convention & Trade Expo, Department of Housing and Urban Development Secretary Shaun Donovan announced a new blueprint for greater consumer access to credit, through a new FHA housing counseling program that will launch later this year. The four-year, two-phase pilot program, called Homeowners Armed With Knowledge or HAWK, will offer a 50 basis point reduction in the upfront mortgage insurance premium and a 10 basis point reduction in the annual premium at the time of loan origination to first-time homebuyers who complete the program. Loans that remain in good standing will also receive reductions, which could add up to thousands of dollars in savings for homebuyers over the life of their loan.
Carol Galante, FHA Commissioner and Assistant Secretary for Housing, joined Donovan at the forum. She also announced the agency’s quality assurance initiative, which will offer more clarity and transparency to FHA policies to help reduce lender overlays. NAR will provide comments on the notice by July 14th and looks forward to working with the Administration to help qualified homebuyers who are being shut out of the housing market.
Oak Star Bank
573)346-3311 ext. 121