Editor’s Note: The Mortgage Mix is RISMedia’s weekly highlight reel of need-to-know mortgage-industry happenings. Watch for it each Friday afternoon.
- The Fed decided not to make any changes in interest rates again this month, citing not enough evidence as they did back in November. “Inflation is still too high, ongoing progress in bringing it down is not assured, and the path forward is uncertain,” said Fed Chair Jerome Powell.
- Mortgage rates continued their seven-week fall, finally dipping under 7% this week. The 30-year fixed-rate mortgage averaged 6.95%, and the 15-year fixed-rate mortgage averaged 6.38%. “Although these lower rates remain a welcome relief, it is clear they will have to further drop to more consistently reinvigorate demand,” said Freddie Mac Chief Economist Sam Khater.
- With mortgage rates in a downward spiral, mortgage applications continue to rise, seeing a drastic 7.4% hike this week. The Mortgage Bankers Association (MBA) noted a particular rise in refinancing activity as well. MBA SVP and Chief Economist Mike Fratantoni had this to say about the uptick: “Borrowers who had seen rates near 8% earlier this fall are now seeing some lenders quote rates below 7%.”
- Wells Fargo and other mortgage lenders were found to be involved in racial discrimination in regard to mortgage pricing, as reported by CNBC. The companies were investigated by regulators, who found that pricing exceptions were given statistically less to Black and female borrowers than others. “As long as pricing exceptions exist, pricing disparities exist,” said Ken Perry, founder of a Washington-based compliance firm for the mortgage industry.
