Posted by: Wendy Harpp | January 12, 2012

Breaking News on Mortgage rates

Mortgage rates going up…..As a result of the funding mechanism for the extension of the payroll tax cut passed by Congress, The Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to increase the guarantee fees on mortgage backed securities. This fee will be passed on to banks and lenders in the form of higher rates, and its already hitting the market for locks over 30 days and by the end of the month you’ll see an increase of up to .25% on all Conventional Loans. Where market conditions will continue to dictate future increases and decreases, this will have an immediate impact on rates quoted.  In addition, we’ll see the same increases coming with FHA Loans in an increased Mortgage Insurance Premium in April 2012.



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