Posted To: Mortgage Rate Watch

Mortgage rates managed to improve modestly for the average lender today, but they remain significantly higher than they were before last week’s regulatory drama . By the time we consider the size, scope, and the precipitous imposition of the new refi fee, we’ve never seen anything remotely similar. Lenders were definitely taken by surprise and they’ll definitely be paying dearly for all refis that were already locked. When lenders get big, negative surprises concerning profitability or new cost requirements, they tend to raise rates very quickly and by a larger-than-necessary amount. As such, a fee that should theoretically result in an eighth of a point increase in conventional refinance rates instead resulted in a 0.25-0.375% increase to all conventional rates. If 2.75-2.875 was a strong…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Source: Mortgage News Daily