Today, the Federal Reserve announced that they were raising interest rates. This is the third consecutive interest rate hike, and the Fed is citing a strong economy and low unemployment as reasons for this decision.
However, potential homebuyers don’t need to worry about mortgage rates increasing as the Fed makes their announcement.
The Fed raised short-term interest rates today, but mortgage rates, particularly for the 30-year fixed rate mortgage, are determined by the 10-year Treasury bond. Bonds are influenced by market conditions, global events, etc. and not by the Federal Reserve.
For those considering buying a home, know that though mortgage rates can increase at any moment, they won’t go up just because the Fed raised interest rates.
Source: HousingWire.com, June 14, 2017
Fannie Mae, the government-controlled mortgage giant, is taking steps to make it easier for millions of student loan borrowers to own a home or refinance a mortgage. Student debt has become an increasing concern, amid worries that borrowers burdened by education loans are postponing home buying , causing a drag on the economy. The average undergraduate now leaves college with more than $30,000 in student debt, according to the Institute for College Access and Success.
Fannie Mae, which buys home loans originated by lenders that meet its standards, said Tuesday that it was easing the path for student loan borrowers — and those who may have co-signed such loans — in three ways, said Jonathan Lawless, vice president for customer solutions at Fannie Mae.
Read the source article at The New York Times
Yesterday, interest rates fell to the lowest they’ve been all year! This is great news for those who are ready to purchase a home or are considering refinancing.
Mortgage rates can change at any moment; that’s why it’s so important to strike while the iron is hot.
Rates for home loans fell in line with Treasury yields, nudging mortgage rates to the lowest level of the year, Freddie Mac said Thursday.
The 30-year fixed-rate mortgage averaged 4.08%, down 2 basis points during the week. The 15-year fixed-rate mortgage averaged 3.34%, down from 3.36%. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.18%, down one basis point.
The 10-year Treasury yield fell five basis points during the week as investors continue to re-assess the expectations for fiscal stimulus and economic growth that followed the November election even as fresh geopolitical worries flared. The benchmark government bond breached a key technical level, 2.30%, twice during the week.
Mortgage rates generally track the 10-year Treasury, but that relationship faltered briefly
earlier this year.
Read the source article at MarketWatch
The industry is changing and it can be hard to keep track of where we are. Here’s a flyover look at what’s going on in the mortgage industry right now.