Welcome back to another weekly mortgage update! A few things surprised us this week.
Mortgage rates slightly improved this week but we are hitting a resistance level. We are still in the mid to high 7% range for 30-year fixed rates with a possibility of drifting higher. But here’s some good news!
Jumbo No More
The projected new loan limit is going to be $750,000 – about a $25,000 increase. Once you hit $750,001 and above, you’re back to getting a jumbo loan. While this won’t be official until next year, we will be allowing these loans to lock at $750,000 as of today at Mortgage Mark. Call us for more information and to get started!
Consumer Price Index
Looking at the Consumer Price Index, it was about where we expected but higher in others. Watch the video above for a breakdown of month-over-month and year-over-year data. We are still around 3.7% but the Fed wants to be at 2%.
Shelter Costs Lag
Shelter is 43% of the CPI. The real inflation should be 2.3% The Fed does not need to raise rates any more. Inflation can and should be going down with the exception of a few weird things.
Through a survey given by Fannie Mae, 84% of people say it’s not a good time to purchase and the #1 reason is rates. Remember, rates are not forever. If somebody buys a home today, they can eventually refinance.
Costs of Homeownership in 2022
How much more did borrowing cost in 2022? As mortgage rates surged, there was an average of a 46% increase in borrowing last year – nothing anyone likes to see.
Whether you are a consumer, realtor, or builder, connect with our awesome team at Mortgage Mark.
Mark Pfeiffer is a Mortgage Loan Originator with CMG Home Loans and a veteran of the mortgage industry since 2003. Mark is responsible for ensuring all loans originated by the Mortgage Mark Team offer competitive terms and close on-time.