The Federal Housing Finance Agency (FHFA) took steps today to meet one of the goals set forward in its 2022 Scorecard for the GSEs Fannie Mae and Freddie Mac, announcing targeted increases to the upfront fees for certain GSE high balance and second home loans. High balance loans (called super conforming loans by Freddie Mac) are mortgages originated in certain designated areas that exceed the baseline conforming loan limit. That limit is set at $647,200 for 2022. Fees for these loans will increase between 0.25 percent and 0.75 percent, tiered by loan-to-value ratio. Upfront fees for second home loans rise between 1.125 percent and 3.875 percent, also tiered by loan-to-value ratio. FHFA said the new fees will go into effect for deliveries and acquisitions beginning April 1, 2022. The long lead time is intended to minimize market and pipeline disruption. To ensure that the GSEs will continue to provide strong support for affordable housing, pricing of certain programs, including HomeReady, Home Possible, HFA Preferred, and HFA Advantage, will not be altered by the new fees. In addition, loans to first time homebuyers in high-cost areas with incomes at or below 100 percent of area median income will have no specific high balance upfront fees. "These targeted pricing changes will allow the Enterprises to better achieve their mission of facilitating equitable and sustainable access to homeownership, while improving their regulatory capital position over time," said Acting Director Sandra L. Thompson. "Today’s action represents another step FHFA is taking to strengthen the [GSEs’] safety and soundness and to ensure access to credit for first-time home buyers and low- and moderate-income borrowers."
| Mortgage Rates Hitting Even Higher Highs | | Mortgage rates had been drifting modestly higher in general in the past 2 weeks, but the pace is accelerating in the new year. For some lenders, this occurred yesterday in response to heavy selling in the bond market (mortgage rates are based primarily on bonds). Those lenders were forced to raise rates just a bit more today as bonds continued to... (read more) |
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| 30 Yr. Fixed Rate | | 3.34% -0.01% |
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| Rate | Change | Points |
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| Mortgage News Daily | | 30 Yr. Fixed | 3.34% | -0.01 | 0.40 | | 15 Yr. Fixed | 2.69% | -0.01 | 0.40 | | 30 Yr. FHA | 2.98% | 0.00 | 0.00 | | 30 Yr. Jumbo | 3.22% | -0.02 | 0.00 | | 5/1 ARM | 3.79% | +0.04 | 0.50 | | Updates Daily - Last Update: 1/5 |
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| 15 Yr. Fixed Rate | | 2.69% -0.01% |
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| Rate | Change | Points |
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| Freddie Mac | | 30 Yr. Fixed | 3.11% | +0.06 | 0.70 | | 15 Yr. Fixed | 2.33% | +0.03 | 0.70 | | 5/1 Yr. ARM | 2.41% | +0.04 | 0.50 | | Updates Weekly - Last Update: 12/30 |
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| Mortgage Bankers Assoc. | | 30 Yr. Fixed | 3.27% | -0.03 | 0.41 | | 15 Yr. Fixed | 2.59% | +0.01 | 0.32 | | 30 Yr. Jumbo | 3.31% | -0.01 | 0.27 | | Updates Weekly - Last Update: 12/22 |
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| MBS Live Recap: Bonds Still Selling, But at a Slower Pace | | Bonds Still Selling, But at a Slower Pace In terms of volume, participation, and holiday closures, today was the most normal trading day in the bond market for several weeks. That was a more unfortunate fact earlier in the day as bonds hit their weakest levels in more than a month. Even at the 3pm CME close, Tr... (read more) |
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| UMBS 30YR 2.5 | | 101.09 -0.47 |
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| MBS | | UMBS 2.5 | 101.09 | -0.47 | | UMBS 3.0 | 103.08 | -0.28 | | GNMA 2.5 | 101.69 | -0.42 | | GNMA 3.0 | 102.97 | -0.25 | | Pricing as of: 1/5 5:21PM EST |
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| 10 Year US Treasury | | 1.7087 +0.0597 |
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| Price / Yield | Change |
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| US Treasury | | 2 YR Treasury | 0.830 | +0.070 | | 5 YR Treasury | 1.433 | +0.072 | | 7 YR Treasury | 1.633 | +0.069 | | 10 YR Treasury | 1.709 | +0.060 | | 30 YR Treasury | 2.101 | +0.042 | | Pricing as of: 1/5 5:21PM EST |
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