FHFA Rescinds DTI (Debt to Income) Pricing
The Federal Housing Finance Agency (FHFA) it has rescinded the upfront fees based on borrower’s debt-to-income (DTI) ratios for loans acquired by Fannie Mae and Freddie Mac. This removed one layer of the recent complex pricing structures emposed on conventional loans.
CPI, consumer price index released yesterday was an expected at +0.4 percent, equating to an annual rate of 4.9%. This is slightly less than the 5% estimate and the lowest annual pace since April 2021. This resulted in rates slightly decreasing. Last Friday we saw a rate increase, post the jobs report. Nonfarm payroll increased $253,000 for April beating expectations. The unemployment rate was 3.4% vs an estimated 3.6% and tied for the lowest level since 1969.
For a real time specific quote, always contact us. A couple of reminders:
- Interest rates are not one size fits all. Rates are different for each client. Some of the variables include – credit score, loan to value, loan amount, occupancy, property type, loan term, how long the rate is locked for, discount points paid, among many others.
- One of the biggest indicators of rate is time. Rates move all day every day, just like the stock market. Over the last couple of months, we have seen this be more the case than historically.
Please reach out with any questions or if we can assist in any way. I’m always here to help!