Will Trump Sell Fannie Mae & Freddie Mac?

Will Donald Trump sell Fannie Mae and Freddie Mac?  If so, why?  To whom?  For how much?  And how will it affect you? There has been a lot of noise the last few years about privatizing Fannie Mae and Freddie Mac (the agencies), and yet nothing has been done about it.  We’ve talked about the...

Mortgage Rates and the Wild Ride

Well, the wild ride continues for mortgage rates.  Last week I wrote that rates weren’t likely to fall over the holiday week, and that turned out to be true.  In fact, they ticked up a tiny bit. This week started out well, with a nice rally in Treasury bonds and mortgage-backed securities driving wholesale rates...

Conforming Loan Limits Increased!

As expected*, The Federal Housing Financial Agency (FHFA) announced today that they are raising the conforming loan limit for 2017 from $417,000 to $424,100.  This is the first raise in the conforming loan limit since 2006.  This is important because conforming loans – those purchased by Freddie Mac or Fannie Mae – are explicitly guaranteed...

Did Mortgage Rates Level Off Last Week?

Well, they made a run at it.  Many analysts believe that the bond and mortgage-backed securities markets are oversold – in plain English, that mortgage rates have popped up too high and too fast. How high?  That’s a good place to start the discussion.  At a given price point, conventional mortgage rates are about 0.325%...

Interest Rate Update – After Trump

I haven’t updated interest rates for a while, because they were so stable for so long.  After the election of Donald Trump on Tuesday, however, that changed.  Let’s take a look at where they’ve gone and what they might do next. Rates were unusually stable for several months.  Looking at the chart above, the red...

How Will Trump Impact Mortgage Rates?

Will Trump’s election move mortgage rates?  On October 1 I wrote “ If (Investors) see..Trump…as destabilizing they are likely to drive long-term interest rates up.” Today the stock market initially tanked in overnight trading, and then soared up as investors digested the meaning of a Trump presidency, with some stock classes (like private prisons –...