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Factors Affecting A Borrower’s Rate; Will the Fed Push Rates Back Down?

Just keep in mind that Fannie Mae now has much more varied pricing parameters, and there are now many more factors that can adversely impact an interest rate. Credit Scores, Down Payment Size, and Property Type represent only a few of those many factors.

The Wall Street Journal had another good article regarding interest rates; it addressed the question of whether or not the Fed will step in to push rates down. It seems unlikely at this point. On the one hand, the Fed would need to step up their buying of mortgage backed and Treasury securities to push rates back down. BUT, if they do so, this could trigger fears that the U.S. is “monetizing” their debt (just printing money to pay off our debt), and that would trigger inflation fears that would send rates right back up. So the Fed appears to have its hands tied, so to speak.

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167