Fannie Mae and Freddie Mac announced March 10 that they are limiting new loans secured by second homes or investment properties to 7% of the overall loans they purchase (roughly HALF their historic levels!), effective April 1. Some mortgage lenders have started to raise their pricing adjustments in response to FHFA’s announcement.
The housing market stands at a tipping point after a stunningly successful year during the pandemic. Homes are pricier than usual, mortgage rates are rising, the supply of for-sale homes is anemic and consumer confidence in the housing market is falling. Pandemic-related mortgage bailouts are set to expire this summer.
U.S. consumer prices increased solidly in February as the cost of gasoline rose further, leading to the biggest annual gain in a year, but underlying inflation remained tepid amid sluggish demand for services like airline travel. The Labor Department said on Wednesday its consumer price index increased 0.4% last month after rising 0.3% in January. It was in line with economists’ expectations.
The bond market also stands at a tipping point trying to figure out where inflation will be in the short and/or long term. The Fed continues to purchase mortgage-backed-securities. Locking rates is recommended for all approved applications.
Economic Calendar
Report
Period
Estimate
Impact
Date: Mon. Mar. 15
Empire State Index
Mar
14.5
Moderate
Date: Tue. Mar. 16
Retail Sales
Feb
-0.5%
High
Retail Sales ex-auto
Feb
NA
High
Housing Market Index
Mar
83
Moderate
Date: Wed. Mar. 17
Housing Starts
Feb
1.570M
Moderate
Building Permits
Feb
1.750M
Moderate
FOMC Meeting
Mar
Unch
High
Date: Thu. Mar. 18
Jobless Claims (Initial)
3/13
699K
Moderate
Philadelphia Fed Index
Mar
24.5
High
Today’s Rate
Mar. 12, 2021
Conforming Loan
Loan Term (Yr)
Rate (%)
APR (%)
30yr Fixed
2.690%
2.757%
15yr Fixed
1.990%
2.057%
High Balance Loan
Loan Term (Yr)
Rate (%)
APR (%)
30yr Fixed
2.750%
2.817%
15yr Fixed
2.125%
2.192%
Daily rate based on: SFR/Primary/LTV60/FICO 780/PurchaseIMPORTANT: Advertised rates were valid and effective as of the date reflected above, are for informational purposes only, and are subject to change without notice.
Loans are subject to credit and collateral approval. Advertised rates are based on a set of loan assumptions including a borrower with excellent credit history and optimal loan characteristics. Your final interest rate and annual percentage rate (APR) may differ depending on your individual transaction’s specific characteristics, and certain products may not be available for your situation. Several determining factors include, but are not limited to, the state of the property location, loan amount, documentation type, loan type, occupancy type, property type, loan to value, and credit score.
APR reflects the cost of credit over the term of the loan expressed as an annual rate. For mortgage loans, APR may include the interest rate, discount points (also referred to as “points”), and other charges or fees (such as mortgage insurance and origination fees), but does not necessarily take into account other loan-specific finance charges you may be required to pay.
Golden Star, Inc. dba Transglobal Lending, 185 W. Chestnut Ave., Monrovia, CA 91016, NMLS # 1437002 (www.transgloballending.com). All rights reserved. Equal Opportunity Employer and Equal Housing Lender. All mortgage products are subject to credit property approval. Rates, Program terms and conditions are subject to change without notice. Additional conditions, qualifications, and restrictions may apply. This is not an offer for extension of credit or a commitment to lend.
