Mortgage Monday – Week of December 13

Ongoing pressure from Omicron, disaster relief options in select states, and more. Even the relatively stable weeks in our industry are still worth writing – read on for the latest!

Update rates

Last week, mortgage rates started low and edged up on the Fed’s announcement of tapering – the rate at which it cuts its monthly asset purchases. In short, the Fed will be double its rate of decline due to stronger economic activity and higher inflation (which in turn leads to higher rates). The resulting rate hike was small, as evidenced by PMMS of Freddie Mac and won’t pose a big threat to the average buyer, so it’s always a good time to set a rate. Contact your Total Mortgage loan officer for more information.

One variable that continues to put 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 the effects of Omicron are strong enough, we can see a slowdown or even a drop in mortgage rates as we start the new year. But for now, we’ll continue to monitor the situation and keep you updated on the latest rate changes as we see them.

Disaster relief options for tornado victims

Fannie Mae and Freddie Mac propose disaster relief services to those affected by the recent tornado in Kentucky, Tennessee and Illinois. Borrowers located in declared disaster areas may benefit from mortgage loan forgiveness for up to 12 months; and with no late fees or penalties, it’s a great mortgage relief option to ease the financial side of the payback process.

Our Total Mortgage loan officers are licensed from coast to coast and ready to help. If you or someone you know was hit by the storm earlier this month, Contact us for more information.

Still Important – Loan Limit Increase in 2022

In case you missed it, the Federal Housing Finance Agency (FHFA) and Federal Housing Administration (FHA) have made big announcements regarding their borrowing limits for 2022. The bottom line: 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, check out the updated loan limits in detail below.

In closing

Mortgage rates continue to climb slowly, but fight Omicron worries each time. And with the holidays quickly approaching, the rest of December could see little news from our industry. Still, with rates remaining low and loan limit increases coming, now is the time to consider home ownership. feel free to Contact us!

As always, we’ll continue to keep you updated – enjoy the rest of your week!