Home Borrower Industry News – Week of October 25

Industry News – Week of October 25

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Whether you’re a first-time buyer or an industry professional, it’s important to stay up to date on all mortgage news. Let’s go through some of the news from last week and make a forecast for November.

Update rates

Despite their brief drop last week, mortgage rates are nearing their highest since the start of the pandemic. This is the result of an overall drop in COVID-19 cases and an increase in consumer spending; with the economy becoming more active, rates are expected to continue to rise until the end of the year. The week of October 25 saw a slight increase from the previous week, reinforcing this upward trend.

For this reason, fixed rate mortgage options can gain some popularity. If you are not sure, schedule a meeting with your Total Mortgage loan officer to determine which course of action would be best for you.

For now, we’ll continue to watch mortgage rates week after week and keep you posted. Contact us if you have questions.

Fall and winter: a good time to sell?

The onset of the pandemic marked the beginning of a decrease in housing availability and a sharp increase in market prices. Homes are rising in value and selling faster than ever before, so if you’re considering a change, now might be the time to create an ad. According to CoreLogic, more than half of homes sold above list price in August 2021.

If selling sounds appealing to you, read these tips for the fall season:

(Graphic: Fall Selling Tips)

Older, but still important news

In case you missed it, the Federal Housing Administration (FHA) has updated its guidelines for approving borrowers with student loan debt. Each month, the FHA assumes that borrowers pay a certain percentage of their student loan balance; their recent update changed this assumption to 0.5%, which better reflects what borrowers are actually paying. The bottom line: If you make timely payments for your student loan and research an FHA mortgage, you’ll have a better chance of getting approved.

More news: The Low Income First-Time Home Buyers Act (LIFT) was recently proposed as a mortgage aid bill for new low-income borrowers. If approved, it could offer a 20-year fixed loan option with monthly payments similar to the 30-year options. This means that eligible borrowers would pay off their mortgage faster and build wealth faster.

In closing

Rates are rising (but remain low), homes are selling at a high level, and mortgage assistance options for younger borrowers are underway. If any of this information applies to you, be sure to contact your Total Mortgage loan officer to start.


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