April 13, 2021

MP Now News

Mortgage News

Mortgage Rates End Week Near 1-Year Highs

Today was pretty uneventful Mortgage rates– a welcome respite in the context of recent volatility. Actually, “volatility” is putting it mildly. 2021 was a Overall router for longer-term rates, even if 30-year fixed mortgages are historically excellent in the low to mid 3% range. This “historical context” argument is a good prospect for the casual observer, but little consolation to a prospective borrower who saw interest rates of 2.75% a few months ago and believed the hype that they would continue to decline.

Borrowers seeking investment property and second home loans can find one increasing supply of drama Recent regulatory efforts have resulted in the majority of lenders adjusting the cost of these loans sharply. In the worst case scenario, buying an investment property as opposed to a primary residence can cost more than 7 additional points. That’s $ 21,000 for a $ 300,000 loan …

Today’s most important news was the official word from the Federal Reserve that a temporary banking rule would expire at the end of the month. The rule relates to bank leverage and can affect the number of bonds held with certain banks. The bonds that banks can own are all the better for interest rates when all other things are the same. While it’s not entirely clear how big the impact this change will be, we can certainly gauge some of the recent rate hike up to the anticipation of today’s move. Whether that is enough to indicate that interest rates have hit a cap remains to be seen. Many people have bet against rising interest rates in the past few weeks and are quick to regret it. The better bet is to watch, wait, and be ready for the shift. The higher we go, the more likely it becomes.