Rates in Holding Pattern. Trump Administration Restricts Eligibility for FHA and Reduces Oversight.
Approximate Rates for Week Ending 3/28/25
Rates ended up very close to what they were on my last update two weeks ago – there was a slight dip in the interim but that was reversed. Rates seem to be in a holding pattern to see how policies pan out. Potential market movers in the coming week will be on April 2nd with the scheduled implementation of tariffs and then the release of the March Jobs Report on Friday.
The Trump administration’s fiscal policies will continue to have an as-yet-unknown indirect effect on the direction of rates. But it has already taken two direct actions which have affected the mortgage space. Firstly, FHA backed loans will soon be able to US Citizens and Permanent Resident holders only. Previously it was open to more categories of those legally allowed to live and work in the US such as various Visa categories and those with EAD approvals who are waiting for their Green Cards. Secondly, it has slashed funding to the Consumer Financial Protection Bureau (CFPB). Whereas none of the actual oversight rules and laws have been changed, the CFPB has less resources to act against any violations and several large court cases against mortgage companies have already been dropped. Many of the rules were set up to prevent sub-prime loans and predatory lending that were a large causing factor in the 2008 housing/ financial crisis.
40% of experts think rates will go up over the next week, while 33% think they will stay steady and 27% think they will go down.
If you have any questions or would like advice tailored to your needs, I would be happy to help! And if you have any family or friends that you think might benefit from my services, I would be grateful for the referral!
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Mark Smith
Victoria Capital
Los Gatos
408 353 9784
www.MarkSmithLoans.com
LOWER HOME AFFORDABLE RATES FOR FIRST TIME HOMBUYERS (FTHB) SUBJECT TO INCOME LIMITS
No Points No Cost Also Available!
|
Program |
No Points (APR) |
1 Point (APR) |
Change since last update |
|
Conforming (<$806,500) |
|||
|
30yr Fixed |
6.375% (6.50%) |
6.0% (6.48 %) |
No Change |
|
30yr FHA |
5.75% (6.01%) |
5.5% (5.99%) |
No Change |
|
30yr FTHB |
6.375% (6.50%) |
6.0% (6.48%) |
No Change |
|
10yr ARM |
N/A |
N/A |
- |
|
7yr ARM |
6.125% (6.21%) |
5.875% (6.19%) |
-0.125% |
|
5yr ARM |
6.125% (6.21%) |
5.625% (5.99%) |
-0.125% |
|
15yr Fixed |
5.625% (5.81%) |
5.375% (5.89%) |
-0.125% |
|
High-Cost Conforming (>$806,500<$1,209,750) * |
|||
|
30yr Fixed |
6.375% (6.50%) |
6.125% (6.48%) |
No Change |
|
30yr FHA |
5.75% (6.11%) |
5.625% (6.34%) |
No Change |
|
30yr FTHB |
6.25% (6.40%) |
5.875% (6.38 %) |
No Change |
|
5yr ARM |
N/A |
N/A |
- |
|
15yr Fixed |
5.875% (6.01%) |
5.375% (5.93%) |
No Change |
|
Jumbo (>$1,209,750) * |
|||
|
30yr Fixed |
6.375% (6.89%) |
6.125% (6.72%) |
-0.125% |
|
10yr ARM |
6.5% (6.59%) |
6.125% (6.62%) |
+0.125% |
|
7yr ARM |
6.125% (6.21%) |
5.875% (6.21%) |
+0.25% |
|
5yr ARM |
6.0% (6.11%) |
5.875% (6.21%) |
- |
|
15yr Fixed |
6.375% (6.49%) |
6.00% (6.40%) |
No Change |
Conforming Rates and APRs calculated on Purchase loan amount of $600k (conforming), $900k (high-cost conforming,) and $1.25m (Jumbo) 30- day lock, 60% LTV, impounds,780 fico.
FTHB (First Time Home Buyer) conforming rates based on purchase loan amount of $750,000 with 20% down, High Cost Conforming $1m with 20% down. Subject to Income Limits
FHA Rates and APRs Calculated on Purchase Loan amount of $700k (Conforming) and $1m (High Cost), 30-day lock, 96.5% LTV, 720 Fico
This is not a commitment to lend. Rates are provided for informational purposes only. Please contact me for rates, products, and costs for your individual situation.
*Assumes high-cost areas, e.g., Santa Clara County and other Bay Area Counties
DRE: 01395052
NLMS:308562
