Continued Omicron pressure, disaster relief options in select states, and more. Even the relatively steady weeks in our industry are still worth writing about – read on for the latest!
Last week, mortgage rates started low and rose slightly following an announcement from the Fed regarding tapering – the rate at which it reduces its monthly asset purchases. In short, the Fed will be doubling its pace of tapering because of stronger economic activity and higher inflation (which in turn causes higher rates). The resultant rate increase was small as reflected in Freddie Mac’s PMMS and won’t pose much of a threat to the average buyer, so it’s still a good time to lock in a rate. Contact your Total Mortgage loan officer for more info.
One variable that continues to apply downward pressure on mortgage rates is the Omicron variant of COVID-19. We’ve written about this before, but it’s important to reiterate that rate growth correlates with our recovery from the pandemic. If Omicron’s effects are significant enough, we may see a slowdown or even a decrease in mortgage rates as we begin the New Year. But for now, we’ll continue to monitor the situation and keep you updated with the latest rate changes as we see them.
Disaster Relief Options for Tornado Victims
Fannie Mae and Freddie Mac are offering disaster relief services to those affected by the recent tornado in Kentucky, Tennessee, and Illinois. Borrowers within declared disaster areas can take advantage of up to 12 months of forbearance from mortgage payments; and with no late fees or penalties, it’s a great mortgage relief option to aid in the financial aspect of the recovery process.
Our Total Mortgage loan officers are licensed from coast to coast and are ready to help. If you or someone you know was affected by the storm earlier this month, contact us for more information.
Still Important – Loan Limit Increases in 2022
In case you missed it, the Federal Housing Finance Agency (FHFA) and Federal Housing Administration (FHA) made big announcements regarding their borrowing limits for 2022. The result: more bang for your buck to help compete with rising market prices. With loan limit increases for both conventional and FHA options, these upcoming changes will benefit a wide range of borrowers and create more flexibility in the market. The start of the New Year will be a great time to lock in a new rate, so be sure to contact your Total Mortgage loan officer now to get the ball rolling.
For now, review the updated loan limits in detail below.
Mortgage rates continue to slowly climb but are fighting Omicron concerns at every turn. And with the holidays just around the corner, the rest of December may see little news from our industry. Still, with rates remaining low and upcoming loan limit increases, now is a great time to consider homeownership. Don’t hesitate to contact us!
As always, we’ll continue to keep you posted – enjoy the rest of your week!
Filed Under: News
Tagged with: covid mortgage rates, Current Mortgage Rates, Mortgage, mortgage application, mortgage industry news, mortgage news, Mortgage Rates, mortgage rates trends, omicron effects mortgage industry, omicron mortgage rates, Rates, Total Mortgage