When Will Mortgage Rates Go Down?

Today’s $64 million question is: when will mortgage rates go down? Most experts believe rates will begin to head lower later this year, but that is too late for some buyers in the market right now.

However, the Trump Administration is already helping homebuyers by unwinding the LLPAs (loan level pricing adjustments) set in place by the previous administration. Those LLPAs made it easier for people with low down payments or poor credit to obtain financing, at the expense (higher costs/rates) for those who have higher down payments and better credit. Trump’s new director of the FHFA will unwind these unfair practices, giving everyone a better chance of obtaining a mortgage, bringing down rates.

Another recent change are new rules for appraisals, allowing waivers for a higher percentage of well-qualified buyers. While this doesn’t affect the rate, it does lower closing costs by $500-$800 for those who qualify for a waiver.

The housing market has been under a wet blanket for the past 3-4 years with rising prices and high interest rates. But we are beginning to see tide turn in pricing, in rates, as well as with various incentives. If you’re have questions about your current loan, or are considering a purchase or investment property, give me a call to discuss how what might be out there that will benefit you.