Thanks to Fox for Having us on the Morning Blend – Stay Tuned for Part 2 in January 2017!!
Mortgage Bankers Association Cuts Forecast
The Mortgage Bankers Association cut their forecast for new loan origination volumes in the first quarter of 2017 by 3.5%. They are citing higher interest rates as the key cog in the forecast cut.Are Mortgage Interest Rates High?
Mortgage interest rates have earned their way into the hottest topics of discussion lately, and since the recent presidential election, mortgage interest rates seem to have a mind of their own. In the months leading up to the election, mortgage interest rates were near an all-time low. In fact, the 30-year mortgage interest rate during that time was the second lowest point on record for the country, hovering around 3.44%. This was just outside the lowest recorded point in the country’s history, which was right around 3.350% – recorded approximately 3 years earlier. Since the presidential election, mortgage interest rates have been nothing short of volatile. In fact, on many days shortly following the election, rates were changing so frequently that many lenders temporarily restricted access to their pricing engines and stopped publishing rates until the volatility settled. For the month of November, the 30-year mortgage interest rate shot up to 3.77 from 3.47 in October; this was the single largest increase in the 30-year monthly average in over three years. Per Freddie Mac’s most recent market study effective 12/1/16, the current average 30-year mortgage interest rate is just shy of 4.10%. So, are mortgage interest rates high? Well taking into perspective historical mortgage interest rates, not at all. In all reality, a 4.10% interest rate is still extremely low. Imagine having a mortgage interest rate at 18%… Well that’s what they were around in the early 80’s. Yes, an 18% interest rate was uncommon, but double digit rates weren’t. In fact, from late 1978 until 1991, the average 30-year mortgage rate over that time was right around 12.30%. The return...Loan Limits Increase for 2017
The largest financing agencies of the United States government have decided to increase loan limits in 2017. Below are the highlights of the increase: – FHA loan limit “floor” will increase to $275,665 from $271,050. (These are the limits observed in Lee County) -FHA loan limit “ceiling” will rise to $636,150 from $625,500. -Conforming Fannie Mae and Freddie Mac loan limit will increase to $424,100. FHA states that maximum loan limits increased in 2,948 counties and remained the same in 286 counties. Studies have estimated that these increases could have a billion dollar effect on the loan...First-Time Homeownership Driven By Millennials
According to the National Association of Realtors, first-time home buyers are getting off the sidelines and purchasing homes. The share of home purchases by first-time buyers rose to 35% this year from 32% last year. This is a great sign that the job market is finally getting better for those who have less experience in the workforce. The low mortgage interest rates are also helping with...Connect With Us
