Mortgage rates edged lower this week as bond investors waited for Friday’s employment report to gauge when the Federal Reserve will start tapering its purchases of fixed assets.
“It’s changed my life,” said Gian Moore, who purchased a three-bedroom home in Washington D.C. with the help of a community-based down payment assistance program.
Mortgage refinancing applications dropped to a three-month low last week as interest rates rose, the Mortgage Bankers Association said in a report on Wednesday.
The number of days it took to close mortgages backed by the VA dropped to a 10-month low in July, led by a faster time frame for refinancings, according to a report from ICE Mortgage Technology.
Mortgage rates are rising as the investors who influence housing finance react to a Fed decision to taper bond purchases that supported the economy during the pandemic.
An index measuring the availability of jumbo mortgages rose 9.4% while the index for conforming home loans, eligigle for backing from Fannie Mae and Freddie Mac, rose 5.1%, the Mortgage Bankers Association report said.
Lifting the restrictions will allow Fannie Mae and Freddie Mac to aid in expanding homeownership to more Americans without increasing risk, said Jaret Seiberg, managing director at Cowen Group in Washington D.C.
The amount of home equity homeowners could tap gained $1 trillion in the second quarter as record home-price increases made real estate more valuable.
Refinancing from a 30-year to a 15-year mortgage can yield major savings and help you build equity sooner. Is it the right strategy for your situation?
Fed Chairman Jerome Powell had one job to do on Friday with his annual speech at the Jackson Hole Economic Policy Symposium: Keep bond investors from freaking out. He succeeded.
