Since President Biden took office, he has increased the role of the federal government in the lives of everyday Americans. The policies of this Administration have led to high inflation, more government dependency, a struggling economy, and mortgage rates that have doubled over the last 3 years. Instead of reversing his failed policies, he continues to double down.
Under a new rule from the Federal Housing Finance Agency (FHFA), which took effect on May 1st, borrowers with lower credit ratings and less money for a down payment will qualify for better mortgage rates, while those with higher ratings will pay increased fees. Individuals with a credit score over 680 will pay about $40 more each month on a $400,000 loan. This monthly payment could also be higher, depending on the size of the loan.
Simply put, Biden’s new policy will force home buyers with good credit to pay more for their mortgages to subsidize loans to higher-risk borrowers. To make matters worse, and similarly to his student loan forgiveness scheme, he is once again trying to bypass Congress by centralizing more power in the hands of the executive branch. This is why I introduced the Free Market Mortgage Act of 2023. This legislation would prevent Biden’s senseless FHFA policy from being enacted and stops his anti-capitalist agenda.
I am committed to halting the President’s detrimental agenda and holding his Administration accountable. Since Biden took office, he has made policy decisions that supersede authority with little or no oversight. This changes under a House Republican majority. We are fighting back and seeking to end a culture of dependency on the federal government. The last thing we should do is add more fees and burdens on hard-working Oklahomans. I will continue working to get our country back on track.
FAQs
H.R. 3564 would repeal the structure of upfront fees related to mortgages that was instituted by the government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, on May 1, 2023, and reinstate the fee structure that was in place prior to that date.
What is the Free Market mortgage Act? ›
Washington, D.C. - Congresswoman Stephanie Bice (OK-05) recently spoke with Fox News about her new Free Market Mortgage Act of 2023, which would repeal President Biden's regulation that would force lower-risk mortgage borrowers to help subsidize lower rates for high-risk borrowers.
What will mortgage interest rates be in the beginning of 2023? ›
Since the Federal Reserve began its rate hikes in March 2022, the benchmark interest rate has risen 5 percentage points. According to Freddie Mac's records, the average 30-year rate reached 6.48% during the initial week of 2023, increasing steadily to eventually land at 7.03% in December.
Will mortgage rates ever be 3% again? ›
If inflation falls significantly and the economy enters a deep recession, it is possible that mortgage rates could fall back to 3%. However, this scenario is considered unlikely by most economists.
What are the new rules for mortgages in 2023? ›
Under a new rule from the Federal Housing Finance Agency (FHFA), which took effect on May 1st, borrowers with lower credit ratings and less money for a down payment will qualify for better mortgage rates, while those with higher ratings will pay increased fees.
What will happen to the mortgage industry in 2023? ›
In early 2023, we noted that organizations should prepare for the possibility of increased mortgage defaults. During the second quarter of 2023 through year end 2023, the industry discussed the increase in delinquencies, which will continue to pose a risk in 2024.
Will mortgage rates go down in 2023 or 2024? ›
The general consensus among industry professionals is that mortgage rates will slowly decline in the last quarter of 2024. The projected declines have shrunk, though, in recent months. At the start of the year, for instance, Fannie Mae predicted rates would drop to 5.8%.
What is a good mortgage rate? ›
As of May 31, 2024, the average 30-year fixed mortgage rate is 7.11%, 20-year fixed mortgage rate is 6.94%, 15-year fixed mortgage rate is 6.29%, and 10-year fixed mortgage rate is 6.22%. Average rates for other loan types include 6.95% for an FHA 30-year fixed mortgage and 7.14% for a jumbo 30-year fixed mortgage.
What was the 30-year mortgage rate in May 2023? ›
Mortgage rates are trending high across the board. Here are today's average mortgage rates: 30-year fixed: 7.17%
Where will mortgage rates be in 5 years? ›
MBA: Rates Will Decline to 6.4% In its April Mortgage Finance Forecast, the Mortgage Bankers Association predicts that mortgage rates will fall from 6.8% in the first quarter of 2024 to 6.4% by the fourth quarter. The industry group expects rates will fall below the 6% threshold in the fourth quarter of 2025.
The good news is that inflation is cooling, and many experts expect interest rates to move in a downward direction in 2024. Then again, a two-point drop would be significant, and even if rates fall, they're not likely to get down to 5% within the next year.
Why are mortgage rates so high? ›
When inflation is running high, the Fed raises those short-term rates to slow the economy and reduce pressure on prices. But higher interest rates make it more expensive for banks to borrow, so they raise their rates on consumer loans, including mortgages, to compensate.
Can we claim mortgage interest in 2023? ›
You can deduct home mortgage interest on the first $750,000 ($375,000 if married filing separately) of indebtedness. However, higher limitations ($1 million ($500,000 if married filing separately)) apply if you are deducting mortgage interest from indebtedness incurred before December 16, 2017. Future developments.
What is the meaning of free market in real estate? ›
One of the key aspects of a free market economy in real estate sales is the concept of willing sellers and willing buyers. This means that for a transaction to occur, both parties must agree on a price at which the property will change hands.
What is the conforming mortgage limit for 2023? ›
2023 Conforming Loan Limits California is $726,200 and goes up to $1,089,300 for high-cost counties for one-unit properties.
What is the HPML threshold for 2023? ›
From January 1, 2023, through December 31, 2023, the threshold amount is $31,000. xi. From January 1, 2024, through December 31, 2024, the threshold amount is $32,400.
