December 27th, 2011 11:17 AM by Eric Fang
A few borrowers sent me emails concerning the interestrates might go higher in 2012.
1)I believe that the interest rate will stay low the 1st half of 2012. But it will be bottom out this year.
2)Some people interpreted the higher interest ratesbased on some of the policy changes. It was related to the higher G-fees from Fannie Mae and Freddie Mac.But the fee is 0.1 base points.(Usually 0.375 to 0.5base points is equal to 0.125% rates).
So the rate will be slightly higher, but not that significant. Don't worry too much. Everyone should have the chance to refi at the lowest level.
Sorry, still no time to complete the year-end rate analysis and the newsletter.
Here are the news:
Loan officers will have some unpleasant news for their customers in 2012: the cost to obtain a new government-backed mortgage will be rising.In late December Congress passed a short-term extension of the payroll tax cut, financing it with a 10 basis point hike in Fannie Mae and Freddie Mac guarantee fees.
Those fees will be charged to mortgage firms, which in turn are expected to pass the cost onto homebuyers and mortgagors seeking to refinance.