After last Fridays jobs report came up short, mortgage bonds rallied and rates dropped downward about .25%. Most market watches still believe we are in a rising mortgage rate environment going into 2014. Current trends are that larger loans over $625,500 have lower rates and the rate spread between 30 year fixed and adjustable rate loans (ARMS) is widening. The Qualified Mortgage rules for lenders began last Friday and loan applicants will notice new disclosure forms for appraisal notification, mortgage points paid, and homeownership counseling. Lenders are carefully watching loan costs and qualification to make sure a mortgage is "QM" acceptable. Loans that are certified "QM" provide protection against legal action for mortgage lenders.
