Mortgage Market Insider
The looming U.S. debt ceiling which threatens to shut down the government has caused Treasury yields and rates to increase.The 30- and 15-year fixed rate mortgages both increased by 7 basis points to 3.00% and 2.44% respectively.
Stocks fell at the beginning of the week as investors feared the possible ripple effects of Chinese real estate company Evergrande defaulting on its debt. However, experts predict this market correction will be a “shallow” one considering 1) how much cash is in circulation right now and 2) the need for consumers to either spend it now or invest it in a way that will allow them to keep up with inflation (i.e. in stocks). Also on many people’s minds is this week’s FOMC meeting, which began yesterday and will conclude later today. Most likely, the Fed will bring up tapering in November or December while emphasizing that this does not mean a rate hike in the near future. Their most recent “dot plot,” a graph of anonymous rate forecasts, reveals that seven out of 18 Federal Reserve members anticipate a hike by 2023 while four members see a rate hike as early as the end of next year. For the first time though, along with updated projections, we’ll also get forecasts for interest rates and inflation in 2024. As alway, these rate forecasts and Chairman Powell’s press conference post-FOMC meeting leave bonds and mortgage rates in a very volatile position.
recent MMI news
Rates took a spill this week with both the 30- and 15-year fixed rate mortgages falling 4 basis points to 2.93% and 2.37% respectively. current
Frequently asked questions
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Yes and no. It will not hurt your credit to see your initial estimates. But, it will ding your credit by a handful of points when you complete a loan application.
How it works: any time that you apply for credit, it lowers your credit score a little bit. However, when you’re applying for a home loan, you have a window of opportunity to shop around without additional hits to your credit, which is how we’re able to provide you multiple offers without added impact.
Also: when you complete our initial application, you’re not actually applying for a home loan yet. You’re simply browsing your home financing options. So, this is risk-free.
Yes, absolutely. We don’t charge anything for our service, so no origination fees or mark-ups on your rate. Note: there are still costs associated with getting a mortgage, such as appraisal fees and lender fees, all of which will be detailed in your loan estimate.