|10 year government bond yield||0.68%|
|30 year fixed rate mortgage||2.85%|
Stocks are lower this morning on no real news. Bonds and MBS are flat.
Fannie and Freddie just implemented an additional 50 basis point LLPA (an Adverse Market Refinance Fee) on cash-out and rate/term refis. These go into effect for all loans delivered to the GSEs after September 1. Not sure how people are going to handle passing that on for loans that are already disclosed, but… Let’s just say a lock extension past September 1 for refis just got a lot more expensive!
I would assume the additional hit is coming for FHA / VA / USDA as well.
The MBA weighed in on this adverse market refinance fee, and needless to say it doesn’t support it. “Tonight’s announcement by the GSEs flies in the face of the Administration’s recent executive actions urging federal agencies to take all measures within their authorities to support struggling homeowners,” Broeksmit said. “Requiring Fannie Mae and Freddie Mac to charge a 0.5% fee on refinance mortgages they purchase will raise interest rates on families trying to make ends meet in these challenging times. This means the average consumer will be paying $1,400 more than they otherwise would have paid.”
Initial Jobless Claims came in at 963k last week. Never thought I would get excited about a sub 1 million print, but these are strange times.
It seems like any further fiscal stimulus measures out of DC are becoming more of a tough bet.