The average rate on the 30-year fixed mortgage last week was 4.56 percent; the average rate on the jumbo was 4.57 percent, according to the Mortgage Bankers Association. While overall mortgage rates have been rising, a curious thing has been happening within the mortgage market itself. The difference between the cost of a conforming loan ($417,000 and under, except for certain high-cost markets) and a jumbo loan (above $417,000) has shrunk to nearly nothing. In addition, Fannie Mae and Freddie Mac, which back and bundle two-thirds of conventional loans, have been raising the fees they charge to banks, so-called guarantee fees, mostly to protect themselves against default. Guarantee fees have nearly doubled in just the past year.
Posted on: Wed, 14 Aug 2013 18:57:50 +0000