Schaub Team Blog
Posted by Jamie Jewell on Oct 14 , 2019 - 12:51 pm
How has COVID-19 impacted the real estate industry?
Experts at Bankrate explain the digitization of the home appraisal process and how to qualify for an appraisal waiver during the pandemic. They also discuss the implications that this new reality may have on mortgages, as it's becoming more common for borrowers to receive loans without a formal appraisal.
Original Post 10/14/2019:
It’s no secret, mortgage interest rates have steadily fallen despite early 2019 predictions. Here are the facts as Oct 11th as reported by Freddie Mac in a recent article that appeared in Realtor Magazine.
- 30-year fixed-rate mortgage average is 3.05%, with an average 0.5 point. A year ago, 30-year rates averaged 4.90%.
- 15-year fixed-rate mortgage average is 3.05%, with an average 0.5 point. A year ago, 15- year rates averaged 4.29%.
- 5-year hybrid adjustable-rate mortgage (ARM) average is 3.35%, with an average 0.3 point. A year ago, 5-year ARMs averaged 4.07%
Additionally, the Federal Reserve has followed the Federal Deposit Insurance Corp. (FDIC) and Office of the Comptroller of the Currency (OCC) lead in signing off on the proposal that would increase the appraisal requirement from $250,000 to $400,000 after nearly a year deliberation.
The last change to the appraisal threshold was back in 1994 and is stemmed by price appreciation in residential real estate. This rule does not apply to loans wholly or partially insured or guaranteed by or eligible for sale to, a government agency or government-sponsored agency – meaning loans sold to or guaranteed by Federal Housing Administration, Department of Housing and Urban Development, Department of Veterans Affairs, Fannie Mae, or Freddie Mac.
For more information and to read the full article click here.