TODAY’S RATES & HOUSING NEWS
Interest rates have shown some nice improvement over the past 7 days!
Mortgage Backed Securities (MBS) have traded higher most of the week, helping interest rates drop .2 to .3%.
See MBS chart below.
On Friday, Powell’s Jackson Hole speech came and went, and the impact was minimal.
Powell stated that although inflation numbers have improved, the FED has still not achieved their target inflation number of 2%.
The FED will monitor incoming data and could raise the Federal Fed’s Rate more if deemed necessary to get to their target inflation number.
Currently the Federal Funds Rate sits at a 22 year high of 5.25%-5.5%.
All eyes will be on this Friday, September 1st, for the BLS Jobs Number for August.
A low job creation number would be great for mortgage rate improvement.
Below is Mortgage News Daily’s average rates across America as of 8/28.
Below is Green Home Loans rate sheet today.
There are a lot of characteristics that go into a mortgage rate – credit score, investor, loan to value, loan amount, costs, etc.
Please call me to go over your specific scenario so we can price your loan out accurately.
FEDERAL STUDENT LOAN DEBTS NO LONGER IN DEFERRMENT
The Federal Government has paused Federal Student Loan Interest and Required Payments for over 3 years.
That all ends September 1st, 2023 as interest will now accrue with first payments becoming due in October 2023.
It’s estimated that almost 70% of people don’t know that their student loan debts are now becoming due, and 46% are not financially ready to start making payments again.
As Mortgage Originators, it’s common for us to see student loan debt of $50,000 – $300,000.
I believe student loan debt becoming due is going to have ripples throughout the economy.
If you or someone you know has a lot of student loan debt as a homeowner – there are options.
Fannie Mae is allowing clients to refinance their existing mortgage and pay off student loan debts as a RATE AND TERM REFINANCE.
This is significant because CASH OUT REFINANCES have higher rates and more costs, especially if the client’s credit isn’t perfect.
Many clients also have substantial equity in their home and using a Home Equity Line of Credit (HELOC) to consolidate student loan debts and other high interest rate credit date (average credit card rate in America is 23.99%) could make financial sense.
Please call me and we can put together a Free No Obligation analysis so you know your options.
See CNET article below on student loan payments becoming due and how to get information about your payment and a possible income driven repayment plan.