How far can lenders push the credit box?

How far can lenders push the credit box?

Watt announcement helps, but risk keeps standards tight

Warren calls for GAO investigation of nonbank servicers

Asks GAO to review “unprecedented” growth of nonbank servicers

Freddie Mac CEO: We will help increase mortgage lending

Competition among two is still competition
W S
Lending / The Ticker

Freddie Mac: Mortgage rates won't hit rock bottom again

But won't go to 18% either

Freddie Mac
/ Print / Reprints /
| Share More
/ Text Size+

Freddie Mac launched a new blog today.

And in the spirit of the new venture, Freddie posted four pieces of content.

One introduces the blog, another walks first-time homeowners through the mortgage-approval process, and yet another discusses the multi-trillion apartment market.

A final blog post covers the cost of buying a home, via mortgage debt.

That post reveals, that while the cost of homebuying is going up, it's still very affordable when compared to three decades ago:

The same home you considered buying a year ago with a $200,000 mortgage would now cost about $90 more in interest payments per month, or about $1,080 per year, given the rise in mortgage rates since last year. But let's put this increase into perspective – and take the long view.

One thing seems certain: we aren't likely to see average 30-year fixed mortgage rates return to the historic lows experienced in 2012. The all-time record low – since Freddie Mac began tracking mortgage rates in 1971 – was 3.31% in November 2012. Conversely, the all-time record high occurred in October of 1981, hitting 18.63%. That's more than four times higher than today's average 30-year fixed rate of 4.32% as of March 20.

Recent Articles by Jacob Gaffney

Comments powered by Disqus