Rates for refinances are going to increase after Sept 1

[Elise Marquette]

Hi all,

In case anyone was thinking or refinancing, now is the time to do it. Fannie Mae and Freddie Mac released statements yesterday that they will be adding a 50 basis point (.5%) to essentially all cash out and rate reduction refinances that are locked AFTER September 1 (The exception being construction to permanent loans). They say that due to the uncertainty and increased risk in the market due to COVID, it has become necessary to increase the rates. 

https://singlefamily.fanniemae.com/media/23726/display

https://guide.freddiemac.com/app/guide/bulletin/2020-32