US mortgage applications fell to the lowest level in a month last week according to Mortgage Bankers Association and reported by Reuters. Both the refinancing and purchase demand slipped 4.7% the week of August 9th, the largest decline since June 28th this year. Although 30-year mortgage rates have leveled off, it’s too early to analyze the impact on the housing market according to Forbes.
President Obama said overlapping mortgage regulations were preventing young families from buying their first home, calling to streamline the process and help our economy grow. According to Bloomberg news, a new version of a rule to require lenders to keep a stake in risky mortgages will be proposed in the end of August. The more stringent proposal for the Qualified Residential Mortgage rule will require banks to retain a slice of mortgages (5%) when borrowers are spending more than 43% of their monthly income on debt.
Whether you’re purchasing a high-or-low value home, the difference between fixed mortgage and jumbo loans have shrunk to nearly nothing, according to the Mortgage Bankers Association. The average 30-year fixed mortgage last week was 4.56 percent, compared to 4.57% of jumbo loans.
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