Rates climbed again in response to increased tensions in the Middle East, higher oil prices, and a stronger-than-expected jobless claims report.
I’ve been saying, “rates are high, but not “THAT” high for the last few months. But now that rates have hit another high for the last 12 months, I might have to admit they’re high.
The best resource to see current and past interest rates, as well as trends, is Mortgage News Daily.
Today’s average rate is 6.85%, up from 5.99% prior to the Iran War.
Down Payments Can Be 100% Gift Funds
Fannie Mae, Freddie Mac, and FHA allow buyers to use 100% gift funds for their down payment.
I bring this up because there used to be a “5% rule” in which Fannie and Freddie required buyers to bring in 5% of their own funds when a down payment was less than 20%.
The 100% gift funds rule is more important now, as there seem to be more well-qualified (from an income perspective) but cash-starved buyers than ever in this post-COVID inflation world.
And that same inflation has been inflating asset values for boomer parents who are willing to make those gifts.
Jumbo lenders are the exception here, as most require a minimum borrower contribution at least, just like Fannie and Freddie used to.
