Today the increase on FHA’s upfront mortgage insurance premium (UFMIP) begins. The UFMIP is going up from 1.75% to 2.25% of the loan amount and is charged on every FHA loan with less than 5% down. With more down payment the UFMIP goes down a smidgen but not enough to get excited about.
Still to come are the possible changes to the allowable amount of seller credits, form 6% to 3%, and the possible change from allowing 3.5% down to 5% down payment.
As for rates, they have gone up about .25% in the last few days and today is no different. The market is already looking like we’ll have a reprice for the worse. As you know from my previous posts, the Feds have stopped buying MBS or mortgage backed securities. This leaves a lot of supply on the market and with out demand, rates will have to go up to entice investors into the market place.
Last Friday also saw the best jobs report in 3 years and the stock market is reacting positively to that today, as it was closed on Friday.
Feel free to comment or share with anyone you know.
Thank you,
Matt Steinmetz
NMLS# 221315
Envoy Mortgage- Voted Top 25 Tech Savvy Lenders by Mortgage Technology Magazine
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Concord, CA 94520
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