Editor’s Note: The Mortgage Mix is RISMedia’s weekly highlight reel of need-to-know mortgage-industry happenings. Watch for it each Friday.
- According to Mortgage News Daily, the 30-year fixed mortgage rate currently sits at 6.07%, a negligible drop of 0.07% from where it sat on Jan. 9, 2023. The 15-year fixed mortgage rate sits at 5.25%, down 0.12% from the January 9 rate.
- As we recently reported, mortgage applications enjoyed a 1.2% increase for the week ending Jan. 6, 2023. This is according to the latest data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications survey.
- According to Fannie Mae’s Home Purchase Sentiment Index® for December, 14% of respondents said mortgage rates will go down in the next 12 months, up from 10% the previous month. Respondents who expect rates to go up decreased from 62% to 51%, while those who think mortgage rates will stay the same increased from 24% to 31%.
- Wells Fargo is downsizing its home mortgage business and no longer offering correspondent loans. This shift comes on the heels of the mortgage lender settling with the Consumer Financial Protection Bureau for $3.7 billion. As one of the largest financial institutions in the U.S., this pullback could present a hurdle for consumers looking to borrow.
- Rocket Mortgage is also restructuring its marketing team and is reported to have eliminated 20 positions.
- 2022 saw a historic rise in mortgage rates, with rates capping as high as 7%. These rate increases have been cited as a factor in lowering homebuyer demand, so it makes sense that mortgage lenders are downsizing.
- Multiple sources report that due to still-high mortgage rates, sellers are turning to mortgage buydowns to close the deal. Under this process, sellers pay cash to the lender, who holds the money in an escrow account and uses it as part of the new owner’s monthly payment. The overall effect is a mortgage rate that’s anywhere from 1% to 3% lower.
