TODAY’S RATES & HOUSING NEWS
Mortgage rates have risen quickly over the past few weeks in conjunction with the U.S. Government working on a debt ceiling deal.
The U.S. Government has never defaulted on debt, and the debt ceiling negotiations are about raising the amount of money the government can borrower to maintain operations and pay off it’s debt. A default would have huge consequences.
A deal in principle was announced late last week and now both sides have to work on passing the bill in Congress so the bill can go into effect before June 5th, which is the date Treasury Secretary Janet Hellen imposed as the drop date when the U.S. would default on it’s bills.
The average interest across America pushed over 7.1%.
Below is our Green Home Loans Average Rate Sheet compared to the National Average.
The hope is that interest rates will improve with the debt ceiling deal announced, and the initial results are encouraging.
On Tuesday early morning, the Mortgage Backed Security market is trading up 33 bps.
Matthew Graham from Mortgage News Daily states the rise in rates has more to do with economic reports and future FED actions than the debt ceiling. Inflation has not dropped as fast as many had hoped and there is an increasing chance that the FED will again raise the Federal
Funds rate in their June meeting.
There are a number of important announcements coming up that could affect interest rates starting with Friday’s U.S. Jobs Report.
2 weeks later we have the CPI (Inflation Report), immediately followed by the FED’s announcement.
Below is a good article explaining current rate and market conditions:
https://www.mortgagenewsdaily.com/markets/mortgage-rates-05262023
INTRODUCING NEW 1% DOWN GRANT PROGRAM
Excited to announce a new 1% Down Payment Program that is a True Grant – meaning the down payment assistance is not a 2nd mortgage
Many Mortgage Brokers won’t have this product based on who they choose to partner with.
Here is how it works:
Customer completes a loan at 95-97% Loan To Value – typically 97%
There is a 2% Grant and the client’s down payment is 1% + costs/prepaids.
NO MONTHLY MORTGAGE INSURANCE – this is huge as PMI is a significant cost at 95-97% Loan to Value.
$350K MAX LOAN AMOUNT
80% AREA MEDIAN INCOME OR BELOW
Here is the Area Median Income Look-Up Tool if you would like to look it up or email me and I can tell you what it is in your county.
https://ami-lookup-tool.fanniemae.com/amilookuptool/
