Mortgage Market Insider
After plummeting all last week, rates finally ratcheted up yesterday. This leaves both the 30-year and 15-year fixed rate mortgages 2 basis points higher, bringing them to 3.12% and 2.52% respectively.
Concerns over inflation reached a fever-pitch this week after May’s consumer price index (CPI) came out. Far exceeding the Fed’s base target of 2%, it revealed a 5% annual increase in headline inflation, the largest jump since the 2008 financial crisis. While most Wall Street investors are unperturbed by this, with 73% of respondents agreeing with the Fed that these effects are only temporary, consumers disagree. According to a New York survey of consumer expectations, a majority believe inflation will stay at 4% through next year before lowering to 3.6% in three years. However, the most important opinions remain those of the Federal Reserve who meet again later today. While they are not expected to make changes to monetary policy at this meeting, the Fed’s tone and language around the economy and its progress will clue investors in to when they might. Furthermore, to make the stakes higher, only two members need to change their vote in order to move up the timeline of increasing the Federal Funds rate to 2023. Alongside this news of rising prices, rental costs for single-family homes are also on the rise. With a 5.4% increase in April, they experienced the most growth in 15 years, which should be good news for those with investment properties or those hoping to buy a home soon.
recent MMI news
Bonds rallied last week with news of Biden’s expansionary tax plan and assurances from Fed officials that they will maintain the same current strategy. Rates
Yields fell yesterday as both stocks and bonds fell. Rates held steady for the most part throughout all this, but are still lower than where
Frequently asked questions
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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.