Mortgage rates steady, potential regulation changes may be close
Posted on Friday, August 16, 2013 at 10:28:14 AM
There is potentially good news on the horizon for those interested in residential financing, as less-strict changes to mortgage regulations may be in the near future.
The Dodd-Frank Act currently states that banks have to keep 5 percent of all lending deals, as a form of protection to help ensure a fair shake for borrowers and financial institutions alike.
In 2011, a regulation was issued that potentially allowed banks to circumvent the Dodd-Frank Act, according to Bloomberg News. The changes address this issue, and if they pass, they may lessen bank restrictions on loans and allow more borrowers who spend less on debts easier access to residential financing.
In addition, mortgage rates held steady this week, according to recent information provided in Freddie Mac's Primary Mortgage Market Survey for the week ending August 15. Ideally, rate and regulation changes in the coming months will favor borrowers.
"Fixed mortgage rates have been bouncing around over the past few weeks on market speculation that the Fed will taper some of its monetary stimulus," said Frank Nothaft, vice president and chief economist of Freddie Mac. "In fact, 65 percent of economists surveyed by Bloomberg expect the Fed to reduce the amount of bond purchases at its September 17th and 18th monetary policy committee meetings."
The 30-year FRM averaged 4.40 percent, while the 15-year FRM averaged 3.44 percent. The rates didn't fluctuate like some expected, and posted no increase from last week.