Last year I posted a ton about mortgage rates and refinance opportunities. This year to date I’ve been rather silent, largely because rates have trended higher and unfair government-imposed fees on refinance loans made them less attractive. But that’s yesterday’s news! Today its time to jump for joy and proclaim that mortgage rates are as low today as they have EVER been!!!
For starters, market conditions in recent weeks have been more favorable for mortgage rates. Initial fears of widespread inflation have subsided, which has allowed mortgage rates to drop. Furthermore, today the Federal Housing Finance Authority (FHFA) rescinded a fee applied last autumn that added a .5% charge to nearly all refinance transactions. This is pleasant, unexpected, and well-needed news.
Here’s a brief history lesson on the matter: the prior FHFA regime (under director Mark Calabria, appointee of former President Trump) suddenly and unilaterally imposed this fee in August 2020 under the guise of increased risk and costs associated with buying mortgages during the pandemic. In reality, it was a good ‘ol fashion money-grab by the US government. As soon as the law allowed (literally, a supreme court case was decided on the same day granting authority for removal from office), President Biden appointed current director Sandra L Thompson to replace Mr Calabria. Within 30 days of taking her position, the Agency has removed this unnecessary fee for American homeowners.
This means mortgage rates are at record lows!!! Like crazy low. Like 30-yr rates well under 3% & 15-yr rates near 2% low!!! If you haven’t refinanced in the last 12 months, we should chat ASAP. Or, if you’re looking to take cash-out for home improvements or debt consolidation, its never been cheaper to borrow money from your home. Tell your friends. Tell your family. Lets collectively shout this news from the figurative roof-tops to help all homeowners save money!
I know the world is starting to get back to normal (for the moment) and that there are more fun things to do in the middle of summer than apply for a refinance. But, I would recommend you take a few minutes to call me soon to crunch some numbers and see how these developments can help you save money every month.