As expected, the Federal Reserve Board maintained its current policy rate at its May meeting. Despite recent positive indicators, the Board took a wait-and-see approach to rate cuts due to increased uncertainty about the economic outlook.

What exactly did the Fed say?

The Fed’s statement described solid labor market conditions and slightly elevated inflation but emphasized growing risks in both areas. These risks present unique challenges in that growth in unemployment would dictate cuts yet also exacerbate inflation, which would usually result in rate increases. The statement reiterated that future action will be based on 'incoming data, the evolving outlook, and the balance of risks.' 

What does this mean for mortgage rates?

The Fed does not directly control mortgage rates. Investors had already priced in the Fed's decision, so geopolitical and economic events are more likely to have an impact at this time. 

Should you wait for potential future cuts before making your move? Here are some considerations:

• At this point, we cannot rely on Fed actions to lead to a rate drop in the near future, though economic data could spur changes in either direction.

• If you can afford to purchase at today's rates, you may save money by doing so, since home prices are likely to rise while you wait for lower rates.

• If you're currently renting, you could purchase instead and start building equity in a home of your own.

Getting started now with a pre-approval can put you at the starting line when you’re ready to make a move. It's worth a chat.

We have calculators to help you weigh the potential costs when buying at a higher rate or a higher price.

We also have mortgage programs that can help mitigate higher rates. An ARM, for example, offers a lower initial rate before adjusting to fixed rates later. Fixed rate buydowns and HELOCs can help you move forward with your plans, too.

If you want to wait on your next purchase, this is a good time to prepare. A qualification consultation or even a pre-approval is a great place to start.

Background on the Fed:

• The Federal Reserve Board (the Fed) controls the federal funds rate and discount rate, which are charges for overnight loans from bank to bank or from the Fed to member banks.

• This rate was lowered to near zero in March 2020 in response to the pandemic. 

• The Fed has a standing inflation target of 2%. When historic inflation hit in March 2022, they began a cycle of rate increases to slow spending and bring it down.

September 2024 brought the first policy rate cut since the initial change in 2020, with two cuts following in November and December.

Bottom Line:

If this is your time to buy, refi, or access cash from equity, don't let uncertainty about rates slow you down. We're here to help, and we're closing loans every day! 888-616-9885.

 

 

The Federal Housing Administration (FHA) has just increased the amount of money that can be borrowed through its mortgage programs by more than $524,000 in most areas. In high-cost locations, the increase is even greater. New limits will take effect January 1, 2025.

This news could make a big difference for homebuyers!

The increases will allow more borrowers to take advantage of FHA’s benefits:

• Low down payment options

• Lower total cash-to-close requirements with gift or seller contributions

• More lenient and streamlined refinancing

• Ability to combine purchase and rehab financing

Here are the specifics:

• In most areas, the FHA loan limit will be $524,225, a 5.2% increase over 2024's limit.

• In most high-cost areas, the limit moves to $1,209,750.

• In some lower-cost areas or those with higher construction costs, limits will vary.

Questions About The New 2025 FHA Loan Limit Update?

If you have questions about what this change could mean for you, please reach out at 888-616-9885 or click here to contact us.

And if you have friends who may benefit from the news, please pass it along. We would be honored to help them too.

 

We’re Honored to be Recognized in the 2024 Asbury Park Press Community’s Choice Awards!

We are incredibly excited to share some fantastic news — we’ve been named one of the best mortgage lenders in Monmouth County in the 2024 Asbury Park Press Community’s Choice Awards! We are proud to have ranked in the top 3, and we couldn’t be more grateful to our community for this recognition.

This achievement is not just about our services—it’s a testament to the unwavering support of the wonderful people we have the privilege to serve, work with, and partner with every day. Whether you’re purchasing your first home, refinancing, or making an investment in your future, we are honored that you’ve trusted us with your mortgage needs.

A huge thank you goes out to our clients, partners, and employees—you are the heart of our success. Your trust, loyalty, and dedication are what make us proud to call Monmouth County our home, and we couldn’t have earned this recognition without each of you.

As we continue to grow and serve our community, we’re committed to delivering the same high level of service that earned us this award. Our mission has always been to help you make informed, confident decisions in your home financing journey.

Thank you, Monmouth County! Here’s to many more milestones ahead!

 

Exciting changes are on the horizon for homebuyers! Starting in early 2025, Freddie Mac and Fannie Mae are making updates that could simplify the homebuying process for your clients. These changes aim to make purchasing a home faster, less expensive, and more accessible—especially for first-time buyers.

Here’s a closer look at what this change means and how it could benefit homebuyers:

What Is an Appraisal Waiver?

An appraisal waiver allows buyers to skip the traditional in-person home appraisal during the mortgage approval process. Instead, automated tools determine the home’s value based on recent sales and other market data.

Currently, appraisal waivers are available to buyers with an LTV ratio of 80% or lower. But starting in early 2025, this threshold will increase to 90%.

How Buyers Benefit from the New 90% LTV Ratio

1. Lower Down Payments, No In-Person Appraisals

With the increased LTV threshold, buyers can qualify for appraisal waivers with just 10% down. This means fewer hurdles for buyers who may not have a large down payment saved.

2. Faster Closings

Skipping the appraisal process can shave days—or even weeks—off the homebuying timeline. Automated underwriting ensures buyers can move into their new homes more quickly.

3. Cost Savings

By avoiding the in-person appraisal, buyers could save $500 or more in fees. This money could be used for other expenses, like moving costs or furnishing their new home.

4. Reliable and Safe Process

Even without a physical appraisal, lenders will rely on accurate data like credit scores and recent comparable sales to ensure the waiver process is thorough and safe for buyers.

Why This Change Is a Win for Buyers

The new appraisal waiver guidelines address some of the most common challenges buyers face, especially first-time homebuyers. Lower upfront costs and streamlined closings make it easier for more people to achieve their dream of homeownership.

If you’re planning to buy a home in 2025, this update could make the process smoother and more affordable.

Get Prepared for 2025

As these changes roll out, staying informed will help you make the most of this opportunity. Have questions about appraisal waivers or how they could impact your buying experience? Greenway Mortgage is here to help. Let’s discuss how this new policy can benefit you. Give us a call 888-616-9885 or email us at leads@greenwaylending.com.

 

On November 26, 2024, the Federal Housing Finance Agency (FHFA) announced an increase in the maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2025.

The maximum loan limit for one-unit properties will be $806,500, an increase of $39,950 (or 5.2 percent) from 2024. Release.

National Baseline

The decision was based on the recovery of housing prices under the Housing and Economic Recovery Act of 2008 (HERA). They require that the baseline conforming loan limit be adjusted each year for Fannie Mae and Freddie Mac to reflect the change in the average U.S. home price.  

FHFA third quarter 2024 House Price Index (HPI) reported that house prices increased 5.21%, on average, between the third quarters of 2023 and 2024. The baseline maximum conforming loan limit in 2025 will increase by the same percentage.

High-Cost Areas

For areas in which 115 percent of the local median home value exceeds the baseline conforming loan limit, the maximum loan limit will be higher than the baseline loan limit. 

List of 2025 Conforming Loan Limits For All Counties

A list of the 2025 maximum conforming loan limits for all counties and county-equivalent areas in the country can be found here.

Curious about limits in your county or other areas? Follow the link below to check. We update it with every change, so bookmark it for future reference if you'd like. 

Contact your Greenway Mortgage loan officer today for more details about how the increase can impact you.

2025 Conforming Loan Limits Effective January 2025