Rates also took a breather after three weeks of consecutive increases
As broadly predicted, the Fed hiked the benchmark interest rate this week. But what does that mean for originators?
The most recent uptick in interest rates is influencing originators to prioritize home purchase loans, rather than refinances.
The recent uptick in interest rates is signaling the end of an era of super low interest rates.
Jumbo mortgages are traditionally associated with luxury homes and other residential properties typically located in neighborhoods where higher costs of living tend to keep middle and working class house hunters away.
More than 100 forecasters in a national survey said they expect the home values to reach an average of 5.4 percent year-over-year and that current Federal Reserve policies post some risk of re-inflating the housing bubble.
It was a battle between economists and legislators. The mortgage interest tax deduction was deconstructed and dismantled during a meeting of the Joint Committee on Taxation of the U.S. Congress. This $100 billion annual deduction has come under heavy scrutiny due to the budget deficit and the ongoing sequestration.
According to the National Association of Home Builders (NAHB), oversimplifying the tax code and reducing financial incentives for housing could hurt the American middle class and widen the gap between the super-rich and everyone else. Such was the testimony presented to the U.S. Congress by economist Robert Dietz on behalf of the NAHB.