No, There is NOT a New 40yr FHA Loan

Mortgage rates didn't do much today (the average lender drifted microscopically, and Wednesday's CPI data has infinitely more power to move the needle anyway) so let's take our time to focus on something that's actually interesting and oh-so-timely. The Rumor: FHA announced a new 40 year loan The Reality: FHA announced a LOAN MODIFICATION OPTION that has a 40yr repayment term For those who already understand the difference between a loan modification and a new loan option, you're free to go and have a great day. Everyone else won't need to spend more than a few sentences to get up to speed. A loan modification is a program offered by lenders designed to avoid more dire outcomes when a borrower is struggling to make timely mortgage payments (i.e. foreclosure, short sale, etc). How did this rumor get started? Reporters misinterpreted the initial news because, unlike everyone who's read this far in this article, they either didn't know what a loan modification was or they somehow missed that this news applied only to loan modifications. Despite the source material coming out over a month ago, the rumor seems to have gained critical mass just this week based on the uptick in questions and comments we're seeing. Now that you know the truth, don't be shy about forwarding this article if you see the rumor being perpetuated.

April 11, 2023 Download our Mobile App: Download our Mobile App: Mortgage Rate Watch No, There is NOT a New 40yr FHA Loan Mortgage rates didn't do much today (the average lender drifted microscopically, and Wednesday's CPI data has infinitely more power to move the needle anyway) so let's take our time to focus on something that's actually interesting and oh-so-timely. ... (read more) MBS Commentary All Eyes on CPI All Eyes on CPI Wednesday morning brings the most consequential economic data of the next several weeks in the form of the Consumer Price Index (CPI) for the month of March. Bond yields spent today movi... (read more) Rob Chrisman Product and Pricing Engine, CRM, Jumbo, Warehouse Products; Freddie and Fannie Changes “The human brain is the most amazing organ in the human body. It works 24 hours a day, 365 days a year, from birth up until the moment that you buy your first NFT.” Money, some say, makes the world go ‘round. Last week we all learned that net product... (read more) Mortgage Rates 30 Yr. Fixed Rate 6.52% +0.02% Rate Change Points Mortgage News Daily 30 Yr. Fixed 6.52% +0.02 0.00 15 Yr. Fixed 5.93% +0.02 0.00 30 Yr. FHA 6.17% +0.02 0.00 30 Yr. Jumbo 6.00% +0.01 0.00 5/1 ARM 6.70% +0.02 0.00 30 Yr. VA 6.25% 0.00 0.00 Updates Daily - Last Update: 4/11 15 Yr. Fixed Rate 5.93% +0.02% Rate Change Points Freddie Mac 30 Yr. Fixed 6.28% -0.04 0.00 15 Yr. Fixed 5.64% +0.08 0.00 Updates Weekly - Last Update: 4/6 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 6.40% -0.05 0.59 15 Yr. Fixed 5.97% +0.13 0.54 30 Yr. Jumbo 6.36% +0.09 0.47 Updates Weekly - Last Update: 4/5 MBS / Treasuries UMBS 30YR 5.0 99.58 +0.05 Price / Yield Change MBS UMBS 5.0 99.58 +0.05 UMBS 5.5 100.83 +0.08 GNMA 5.0 99.81 +0.11 GNMA 5.5 100.78 +0.13 Pricing as of: 4/11 5:31PM EST 10 Year US Treasury 3.4299 +0.0150 Price / Yield Change US Treasury 2 YR Treasury 4.025 +0.015 5 YR Treasury 3.531 +0.010 7 YR Treasury 3.480 +0.011 10 YR Treasury 3.430 +0.015 30 YR Treasury 3.623 -0.004 Pricing as of: 4/11 5:31PM EST Latest Video Irrespective of what the Fed does inflation will plummet: Rosenberg Researc... Chicago Fed President Goolsbee weighs in on monetary policy NFIB's small business optimism index sinks this month Tight labor market will push inflation higher, says Citi global chief econo... Around the Web Reuters Fed's Goolsbee: Prudence, patience needed on rate hikes Calculated Risk Blog 2nd Look at Local Housing Markets in March Eye on Housing Nonrevolving Debt Increases as Auto Loan Rates Surge Calculated Risk Blog More Employment Graphs: Duration of Unemployment, Unemployment by Education, Diffusion Indexes CNBC Outlook for credit access hits record low while inflation expectations jump, NY Fed survey shows CNBC IMF cuts GDP forecasts, says global economy heading for weakest growth since 1990 Reuters Central Europe's policymakers double down on hawkish message CNBC Treasury yields dip as investors look to Fed speaker remarks ahead of key inflation data Calculated Risk Blog A Few Comments on Commercial Real Estate Black Knight Black Knights March 2023 Originations Market Monitor Calculated Risk Blog Housing April 10th Weekly Update: Inventory Increased 0.2% Week-over-week Calculated Risk Blog Leading Index for Commercial Real Estate Decreased in March Eye on Housing Residential Building Wage Growth Slowing

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