Month in review.

Position:Loan Rate Monitor
 
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As we enter October, we see a confluence of forces--a steady rally in the mortgage-backed securities (MBS) market, likely powered by a third round of quantitative easing (QE3), offset somewhat by an increase in the fees charged by Fannie Mae and Freddie Mac for conforming loans. in spite of the increased fees, mortgage rates are at all-time lows. The most recent fee increase was the first of many increases announced by the Federal Housing Finance Agency (FHFA) designed to "encourage private firms to wade back into the housing finance market" and to "reduce government's role in the housing market." September marked the fourth anniversary of the government-sponsored enterprises (GSEs) entering conservatorship. The lower mortgage yields afforded by QE3, combined with the higher fees charged by the GSEs, contribute to the mission of maintaining credit for new mortgages, building a new secondary market infrastructure and contracting the dominance of the GSEs. And the increased fees serve as a welcome revenue source for Congress.

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Monthly 30-Nov 30-Dec 23-Jan 29-Feb 30-Mar 30-Apr 31-May Averages 15-Year Fixed 3.394 3.323 3.485 3.417 3.395 3.182 3.052 Conforming 30-Year Fixed 4.060 3.936 4.124 4.063 4.104 3.915 3.695 Conforming 30-Year Fixed 4.685 4.458 4.414 4.408 4.532 4.258 4.098 Jumbo 5/1 ARM...

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