True Stories: Hybrid, eNote and RON Implementation

Join expert panelists that will discuss the status of federal legislation, trends in digital adoption and how best to prepare your organization for the next generation of lending processes.

Spruce’s Patrick Burns on innovation in title technology

In the season finale of Housing News season 5, Spruce CEO discusses heightened investor interest in title tech, innovation and fintech adoption.

Top CFPB official “hates” QM rules, jeopardizing safe harbor

A top CFPB official in charge of the rule-making process has heavily criticized the agency's own qualifying mortgage rule, jeopardizing safe harbor.

Fraud risk factors at closing increased almost 90% last quarter

A variety of risk factors could be contributing to the drastic increase in wire and title fraud risk factors in mortgage and real estate closings – for example, compliance issues and an increase in transaction data errors.

Mortgage

Mortgage rates remain at all-time low

The rate matched last week’s record low of 3.13%, Freddie Mac says

The average U.S. rate for a 30-year fixed mortgage this week is 3.13%, matching last week’s rate that was the lowest on record, according to Freddie Mac.

Mortgage rates remained at the record low as the three most populous U.S. states – California, Texas and Florida – hit new highs for COVID-19 infections, driving money managers to seek fixed-income investments like mortgage bonds in a “flight to safety,” said Keith Gumbinger, vice president of mortgage-data firm HSH.com.

“With the rising incidents of COVID-19 in some states, there’s definitely a little bit of a shift to safety, a shift into bonds as investors wait to see how the story unfolds,” Gumbinger said.

Low mortgage rates have been a bright spot in the U.S. economy since the Federal Reserve stepped into the bond market in March and began buying fixed assets to boost competition and shrink yields. Fed Chairman Jerome Powell has pledged to keep purchasing Treasuries and mortgage bonds for as long as support is needed.

The low interest rates have helped to support home prices. When rates are cheaper, the size of the mortgage borrowers can get becomes bigger because monthly payments shrink as financing costs go lower. That means people can bid higher for a home they like.

Prices for homes in April that were bought with mortgages backed by Fannie Mae and Freddie Mac increased 5.5% from a year earlier, which matched the annual gain seen in April 2019, long before the pandemic emerged.

Rates aren’t expected to jump any time soon. Fannie Mae, the larger rival to Freddie Mac, said in a forecast earlier this month that the average 30-year fixed rate for 2020 probably will be 3.2%, down from 2019’s 3.9%. This would be the lowest annual average ever recorded. For 2021, Fannie Mae said it expects the average rate to drop to 2.9%.

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