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 Federal Reserve this week kicked off a long expected campaign of rate cuts with a larger than expected 50 basis point reduction in the federal funds rate. Fed Chair Jerome Powell called the decision “a good strong start,” though it remains unclear how quickly even larger rate cuts will spark new activity in the housing market.
-The FDIC released updated guidelines regarding how it will scrutinize bank mergers, specifically taking into account the size of banks when considering whether to approve a deal, according to National Mortgage Professional. Consumer Financial Protection Bureau Director Rohit Chopra previously lauded some of the proposed guidelines as helping ensure banks understand that “megamergers” have a low chance of being approved.
-New Jersey-based OceanFirst is paying $15 million to settle an investigation launched by the Department of Justice (DOJ) into alleged redlining, the investigators presenting significant evidence the bank failed to serve majority Black, Hispanic and Asian communities. The DOJ redlining initiative has now raised $137 million in “relief” since it was launched in late 2021, according to Attorney General Merrick Garland.
-Ahead of the Fed’s rate cut, mortgage rates fell significantly, down to 6.09% from 6.20% the previous week, according to Freddie Mac. But experts don’t expect rates to fall much further, at least until the Fed makes its plan more clear for future cuts.
-Falling rates had an immediate effect on consumers, however, with refinance applications in particular spiking by 24% from last week, according to the Mortgage Bankers Association (MBA). Rates are now at their lowest level in two years, according to the MBA.
