Mortgage Monday – February 21, 2022

February 21, 2022
by Zach Festini

With mortgage rates continuing to rise this year, it’s more important than ever to stay informed of the latest industry news. Let’s jump right into this week’s update!

Rates update

2022 continues to be on track with earlier predictions of a return to pre-pandemic markets. Last week’s change in mortgage rates was mirrored as much with widespread increases across several lending products, as reported by Freddie Mac. Essentially, this is the continued result of record inflation, rising house prices, consumer spending optimism, and more. A concern to note is that all of these things could affect the overall affordability of home ownership; if you want to lock in a rate while it is still low and take advantage of the benefits of long-term savings, contact your Total Mortgage loan agent today.

Our prediction: Mortgage rates will continue to rise. Over the past month, they have approached levels not seen since the start of the pandemic. This may sound scary, but it’s important to remember that even so, rates are always relatively weak. contact us to get funding now before they continue to grow.

Older, but still important news

Let’s review some of the most important industry news that has affected buyers since the start of this year.

  • In early February, the Federal Housing Finance Agency (FHFA) lifted its restrictions on borrowers with self-employment income. These were initially put in place in response to the pandemic but have since been removed, providing borrowers with greater opportunities in an already competitive market. The same credit and income requirements may apply, but home financing is now generally more accessible to the self-employed.
  • The Federal Housing Finance Agency (FHFA) has announced upcoming fee increases (effective April 1, 2022) for certain Fannie Mae and Freddie Mac home loans. These increases will ultimately depend on the loan-to-value ratio of each product. “High balance” loans are considered to be any that exceed the compliant base limit introduced on January 1 – more on that below.
  • Earlier this year, borrowing limits for Conventional and Federal Housing Administration (FHA) loan options were significantly increased to help homebuyers combat rising market prices. The conforming limit for home loans for one unit is now $647,200, an increase of 18.05% over last year’s limit.

To learn more about any of these recent developments, contact your Total Mortgage Loan Officer. Our goal is to educate and inform all of our borrowers, so we’d love to hear from you!

In conclusion

As always, our door is always open if you have any questions about financing a home or exploring the benefits of home ownership. The market can change and increases in mortgage rates can seem daunting, but buying opportunities are always available to borrowers everywhere. In the coming months, it will be important for borrowers to act decisively and buy as soon as possible, especially as the market returns to its pre-pandemic state.

We will continue to monitor news and provide updates as they occur. Find your mortgage banker if you have any questions and have a nice weekend!

Filed Under: News
Tagged With: Current Mortgage Rates, Mortgage Industry News, Mortgage Monday, Mortgage News, Mortgage Rates, Mortgages, news, Rates

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