TODAY’S INTEREST RATES
The mortgage markets are starting off the week nicely after having a down week last week.
At the time of this writing, 7:00 am Tuesday morning, the Mortgage Backed Security market is up 33 bps.
Check out the chart below to see how far we have come since about October 20th, 2022.
The lower the graph, the higher interest rates.
Interest rates are over 1% better than October.
The below survey for average interest rates across America is .2% higher than my last update. Sometimes, when you have light trading around the holidays, markets can move more than they would with normal trading activity.
Hoping for a good week.
On Wednesday we have the FED Minutes and Friday the US Jobs Report.
2022 saw perhaps the largest rise in mortgage rates in history.
Glad to close that chapter and excited for what I expect to be a much better year for rates in 2023.
Here is an article from Mortgage News Daily about where we’ve been and where we are going.
I’m re-highlighting the Freddie Mac Borrow Smart Program and our Buy Now Refi Later Program in case you missed it over the Holidays.
Happy New Year!
FREE GRANT MONEY FROM FREDDIE MAC
Fairway is one of only a handful of Mortgage Lenders in the nation piloting this new program from Freddie Mac grant program.
The program is called Freddie Mac BorrowSmart and the program allows a borrower to get a free $1,000-$2,500 in Grant Money (client never has to pay back) based on the area median income. The grant money can go towards down payment or closing costs and does not result in the client getting a higher rate.
If clients make > 80% of AMI to 100% of AMI = $1,000 grant
If clients make > 50% of AMI to 80% of AMI = $1,250 grant
If clients make 50% AMI or less = $2,500 grant
You can look up AMI in specific areas here: https://sf.freddiemac.com/working-with-us/affordable-lending/home-possible-eligibility-map
Client must qualify with the Freddie Mac Home One or Freddie Mac Home Possible Product, and the program can be used with city and county Down Payment Assistance options that do not involve a bond.
Below are the standard guidelines for these programs.
This is a great way to get a deal and have Freddie Mac contribute towards your closing costs and/or down payment.
BUY NOW / REFI LATER
Many clients are hearing that interest rates are expected to go down in 2023, so they want to hold off on purchasing a home until financing costs are more affordable.
While that sounds like a good idea on paper, there will also likely be an influx of demand if rates drop to the low 5%’s like many mortgage analysts predict. If you look at when demand started to go down from it’s peak in May, there is almost a direct correlation to the timing of when interest rates went up in March and April.
We are now offering a Buy Now/Refinance Later program which allows clients that purchase before March 31st 2023, the ability to refinance with no lender costs should rates drop after they purchase.
A client does have to stay in purchase mortgage for 6 months and client does have to qualify for the refinance based on loan to value, credit score, and debt to income ratio requirements.
If you buy now, we will get you a big discount on the refinance should rates drop in 2023