There's good news in the home financing world: Lower interest rates make financing a home today cost less than it did last year, even though prices continue to rise.
Look at the difference in the monthly principal and interest (P&I) payment with a 5% jump in price:
You can see the market offers a renewed opportunity to buy at a lower cost. Of course, no one knows how long current rate trends will last.
If you or a loved one is ready to purchase, please remember that getting a pre-approval for your home loan is a good first step. We are glad to discuss the markets, the process, and the many available financing options.
Are you ready to get started? Contact us today!
HARP was initiated in 2009 to help underwater and near-underwater homeowners refinance their mortgage. Since then, the plan has been extended past its intended expiration several times. In 2015, it was extended to the end of 2016. In 2016 – despite FHFA Director Mel Watt’s warning that the program wouldn’t last forever – it was extended until Sept. 30, 2017, in order to serve as a “bridge” to a new refinance program the FHFA planned to launch in October of 2017.
According to the FHFA, HARP is being extended again because of modifications to its High LTV Streamlined Refinance Program, which was created for borrowers who are current on their mortgage but unable to refinance because their loans’ LTV ratios exceed the maximum limits of Fannie Mae and Freddie Mac. The FHFA said it was extending HARP to “ensure that high LTV borrowers who are eligible for HARP continue to have a refinance option.”
“More than 143,000 homeowners could still benefit from refinancing through HARP,” the FHFA said.
You can continue reading more about the extension here.
As expected, the Federal Reserve announced today that it would raise interest rates by a quarter of a percent.
“In view of realized and expected labor market conditions and inflation, the Committee decided to raise the target range for the federal funds rate to 3/4 to 1 percent,” the Federal Open Market Committee said in a statement. “The stance of monetary policy remains accommodative, thereby supporting some further strengthening in labor market conditions and a sustained return to 2 percent inflation.”
The hike marks only the third time in a decade the Fed has raised its benchmark interest rate. The last hike came in December.