Mortgage Interest Rates and News and it isn’t too pretty, or something to laugh about…
Interest rates have been climbing and it starts with the Federal Reserve and of course, Jerome Powell and the crew called the Feds Rates. This is the rate of interest that Banks charge when lending to each other.
Of course, it is in what is said to be the right frame of mind for the inflation that exists within our country. These rates affect credit cards, bank loans ie. car loans, etc. HELOC loans and savings accounts.
However, these rates influence to some degree but do not largely define Mortgage Interest Rates. Nonetheless, we will give you what does drive the Mortgage Interest Rates Forcast for 2023.
How Mortgage Interest Rates Are Determined By…
The Bond Market- What is The Bond Market?
The bond market—often called the debt market, fixed-income market, or credit market—is the collective name given to all trades and issues of debt securities. Governments typically issue bonds in order to raise capital to pay down debts or fund infrastructural improvements. Publicly traded companies issue bonds when they need to finance business expansion projects or maintain ongoing operations. Get the full definition: The Bond Market Everything You Need To Know
Interest Rate Trends for February
At the beginning of February some lender-in fact many per Mortgage News Daily were quoting rates at 7.000% or higher. The rates are fluctuating back and forth it seems as the day after the 9th day of February the rate dropped to 6.625%.
As is known by all the Feds are pushing rates up due to inflation and trying desperately to avoid a recession. As of Friday, the rate was leaning toward 6.750% per MND, and then up to 6.870%.
As of today, 2/23/23 – the typical TRENDING RATE is 6.872% for a 30% Fixed Rate Mortgage. * This is not a quote this is a trend from different lenders re: Mortgage News Daily Rates. trends.
**as of Friday 2-24-23 trending rates were up to 6.88%
Rates can change daily depending on the markets and what is going on with the economy.
Federal National Association (Fannie Mae) Forecast- mortgage interest rates and news
FNMA stated on the 21st that the Economy and Housing started out well with a strong footing at the first of the year. However, their prediction was that it will not continue. They state that while some optimism is in the housing sector, it only represents an increase from a very low level of activity and will more than likely start decreasing again if rates go higher.
Fannie Economic Division also indicates that even though there seems to have been some economic growth/strength that it is a reflection of abnormal seasonal consumption. This is with hiring and layoff patterns which have actually overstated the true strength of the economy.
The Chief Economist indicates that while there has been some optimism that came into the housing sector, it is a chance that it will decline again if the interest rate change.
They still indicate that even though things are some better regarding housing; they still predict and expect an economic downturn in the future, possibly in the second quarter of 2023, and that a mild recession is likely.
Mortgage Bankers Association States The Following:
Homebuyer affordability decreased in January. This is a survey referring to the national median payment applied for my mortgage applicants with an increase in payments for purchases of 2.3%.
The MBA stated from their weekly survey as of February 22, 2023, that mortgage applications declined 13.3% from one week earlier 2-17-23. They also reported that mortgage interest rates increased by .23 basis points the highest since November 2022.
FHA Mortgage Insurance Premiums Lower
The Housing and Urban Development has issued statements that mortgage insurance premiums are decreasing. This is to allow for more affordability for homeowners. Since home prices have risen and interest rates are higher FHA indicates this will enhance the borrower’s affordability status by making mortgage payments lower.
In Closing for Mortgage Interest Rates and News…
Just some tips to lower your interest quotes and have fewer expenses
- Keep your credit with no 1 x 30 payments or higher.
- Make sure your credit scores are as high as possible.
- Make a down payment as high as you possibly can; the lower your (LTV) loan to value the better your rate can be. 90% LTV is better than 95% LTV. You can also pay off your mortgage early with larger monthly payments.
- With an 80% LTV, you will not need MI-Monthly mortgage insurance.
- You can also buy down your interest with a fee-it is called buydown points.
As always we try to keep our posts up to date with the latest information possible. However, mortgage rules, interest rates, and guidelines change almost daily.
