All articles tagged with #mortgage
Mortgage rates have spiked above 7.5% in a matter of days, driven by a sharp bond-market selloff and rising Treasury yields. This rapid increase is squeezing buyer purchasing power and adding pressure to the fall housing market, reversing earlier trends of lower rates.
As mortgage rates have stubbornly hovered above 6% for years (with spikes above 7%), the hoped‑for refinancing relief many homeowners counted on has largely vanished. Redfin data show more borrowers now carry rates above 6% than below 3%, and refinancing applications remain weak. Profiles like Patrice De La Ossa, who moved to cut costs only to still pay a 6.8% loan, and David Belmonte, whose 7.2% mortgage followed the old “date the rate, marry the home” guidance, illustrate the financial strain and limited options. A brief dip earlier this year offered hope, but rate moves tied to inflation and geopolitical events pushed averages back up (Freddie Mac’s 6.71% read), delaying refinancing for years. Financial advisers say refinancing is worth it only if you can shave at least one percentage point, a condition many homeowners no longer meet, leaving some facing tough choices about staying put or relocating.
Extra principal payments can shorten a mortgage and save interest, but they aren’t always the best move—low-rate loans, debt mix, and refinancing feasibility matter. Consider recasting or refinancing only if it actually lowers costs, and weigh against paying higher-interest debts.
The average rate on the 30-year fixed-rate mortgage rose to 6.66% this week, signaling higher borrowing costs for home buyers.
The White House asks again for Fed Governor Lisa Cook to respond to mortgage-residency allegations as Cook’s lawyers insist there is no legitimate basis to remove her and that the alleged errors were inadvertent. The case centers on what constitutes ‘for cause’ removal of a Federal Reserve governor; the Supreme Court has allowed Cook to stay while proceedings continue, and the White House has signaled potential further attempts to fire, prompting ongoing legal scrutiny of executive power over the central bank.
JPMorgan’s James Sullivan compared the Treasury’s plan to buy back longer-dated bonds with new, shorter-term issues to “paying your mortgage with your credit card,” a short-term fix meant to stabilize markets as U.S. debt climbs toward $40 trillion. The move briefly moves long-bond yields lower but is not a cure for the underlying debt burden, which global institutions estimate at about $350 trillion. The Treasury plans to expand liquidity-support bond buybacks to roughly $4 billion per operation for 10- to 30-year notes through 2026, with details set to be announced on Nov. 4; analysts warn the strategy defers the problem and could backfire if rates rise further.
Ten state attorneys general filed a lawsuit in Oregon to invalidate two OCC rules that let federally regulated banks decide whether to pay interest or charge fees on mortgage escrow accounts and preempt state escrow laws. The suit argues the OCC exceeded its authority; about 14 states require escrow interest, and the rules could reduce interest on escrow balances used for taxes and insurance, though outcomes may depend on jurisdiction and wildcard statutes. The rules took effect June 18.
The piece reframes homeownership from fixating on a home's sticker price to understanding monthly costs, explaining how a 6–9% down payment can trigger PMI, how lenders estimate affordability with debt-to-income (DTI) ratios and the monthly PITI (principal, interest, taxes, and insurance)—and why renting isn’t always safer. It weighs the stability and potential tax benefits of a fixed-rate mortgage against the flexibility and equity built by ownership, and advises getting a thoughtful pre-approval. It also promotes Progressive’s UpPayment program, which offers up to $13,500 in down-payment assistance to eligible first-time buyers.
The article argues that prospective homeowners should focus on monthly costs and cash flow (PITI and DTI) rather than the sticker price. It notes that first‑time buyers typically put down 6–9% (less than 20% often triggers PMI), a trade‑off that can still get people into a home earlier. A fixed‑rate mortgage provides payment stability and potential tax benefits, though maintenance costs fall on the owner. Renting may seem cheaper but doesn’t build equity, while buying builds equity over time. Getting pre‑approved yields concrete numbers for what you can actually afford, and lenders expect you to shop around. It also promotes Progressive’s UpPayment program offering up to $13,500 in down payment assistance for eligible first‑time buyers. The piece encourages turning planning into action with clear, paper‑based numbers before buying.
Freddie Mac says the average 30-year fixed mortgage rate fell to 6.48% for the latest week, easing borrowing costs for buyers and refinancers, though rates remain well above historical norms and affordability remains a hurdle amid high home prices and economic uncertainty.
Mortgage rates fell to their lowest spring-time level in about three years, improving affordability for homebuyers and those seeking to refinance. While the slide boosts purchasing power this season, rate moves remain tied to inflation and policy expectations, so shoppers should compare offers across lenders and consider rate locks as the spring homebuying period continues.
FHA will allow VantageScore 4.0 and FICO 10T for insured mortgages, and Fannie Mae and Freddie Mac are updating guides to accept the new scores, a move aimed at lowering costs and broadening access to homeownership through greater competition in government-backed housing finance.
Fannie Mae will start accepting crypto-backed mortgages through a Better Home & Finance and Coinbase product, allowing borrowers to pledge crypto as collateral for a second loan to cover the down payment while the crypto remains in custody and cannot be traded; although borrowers incur two loan payments, the program offers potentially lower rates and no private mortgage insurance on the second loan, signaling a first compliant step toward tokenized-asset financing in real estate.
Wells Fargo has agreed to a $56.85 million class action settlement to resolve FCRA claims that it inaccurately reported CARES Act forbearances; California mortgagors with current loans who received CARES Act forbearances may share in the net settlement, with a March 25, 2026 claim/exclusion deadline and a final approval hearing on April 17, 2026.
Vice Chair Bowman argues Basel capital rules have pushed banks out of mortgage origination and servicing due to MSR deductions and uniform risk weights; two proposed changes would remove the MSR deduction while keeping the 250% MSR risk weight and move to loan-to-value-based risk weights for residential mortgages, aiming to reignite bank participation, stabilize servicing, and preserve consumer choice and financial stability.