Mortgage Loans

11/27/2018

The Fed Did not Raise Interest Rates Today

Ten Year Yields
Yield Spreads
Mortgage Rates
News
Today Jay Powell did not raise rates!!

Meanwhile President Trump is not happy with the Fed

LOAN Limits Dollar Amounts Increase

FHFA, the regulator of Fannie and Freddie, announced today that the standard conforming loan limit will increase from 453,100 to 484,350 for 2019. The new ceiling for High-cost area limits will be $726,525 (which is 150% of 484,350). Fannie and Freddie will release the full report on high cost area loan limits that are in between the stand limit and the ceiling soon. Both Fannie Mae and Freddie Mac are still government loans, but dollar increase is helpful in high cost areas

https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Announces-Maximum-Conforming-Loan-Limits-for-2019.aspx

The limits for Fannie and Freddie are typically based on acquisition date, meaning that we will likely be able to close at the new limits towards the latter part of December as long as we don’t sell the loans to them until after 1/1/2019. We will announce the soonest closing dates for the new limits once our loan origination system vendor implements the changes and Fannie and Freddie give guidance on their automated underwriting engines.

We are still waiting on FHA to update their limits, so stay tuned for further updates. I expect FHA to increase as well