Mortgage Rates Reverse Course

After six days of improving interest rates, mortgage bonds are “taking it on the chin” today.  It just so happens that stocks have followed the opposite pattern and are positive now.  The big conversation regarding mortgage rates this week should be the “G” Fee increase.  Actually called a “Guarantee Fee,” this is a fee assessed by loan service providers (like Fannie Mae or Freddie Mac).  Although earlier this year, congress imposed a G Fee increase to help cover the cost of the Social Security break we are all feeling on our paychecks, the fee is once again increasing.  This will equate to about 1/8% higher mortgagerates and is already priced in to most 45 day locks.  However, for loans with only 30 day locks the fee may not yet be considered.  Therefore, if you are able to lock your rate now, and the lock is for 30 days or less, lock IMMEDIATELY.  Given the current market, we will continue to suggest an overall locking bias.