TODAY’S INTEREST RATES
Very little to report this week as bonds have traded in a narrow range and rates are very similar to slightly lower than last week.
See Today’s Rates below.
MORTGAGE APPLICATIONS HIT 18 MONTH LOWS
Refinance applications were down sharply last week and Purchase applications are at their lowest levels since May.
In the purchase space, the average loan size for first time homebuyers has went up pushing some potential buyers out of the market completely.
With listings creeping up, and applications down – this could be a great window to go over with your clients to get under contract.
We know it’s tough, but less competition and more listings does help.
NEW FHFA DIRECTOR SANDRA THOMPSON
Existing FHFA Director Mark Calabria was removed after a Supreme Court ruling
allowed the President to remove the FHFA director before his 5 year tenure was up.
Mark Calabria’s policies went against many of the established practices that allows the mortgage industry to operate as it does.
He was behind the 50 bps hit to all refinance mortgages at first with no warning or time period for lenders to adjust.
This change would have cost mortgage companies millions if they didn’t push back the original date.
He was also behind the decision to monitor 2nd home and Investor portfolios by lenders and limiting the amount they can send to Fannie/Freddie.
His goal was to limit Fannie / Freddie’s exposure and move more lending into the private sector.
The problem is a major reason why Interest Rates are so great on Agency Loans is because they are backed by the government.
At the end of the day, Calabria’s policies would result in higher rates and pricing for consumers.
The appointment of new director Sandra Thompson is a welcome change for the vast majority in the mortgage industry.