The headline mortgage rate fell to new lows this week, but conditions across the market remain much more varied than usual as the mortgage industry continues to grapple with uncertainty brought upon by forbearance programs and rapidly changing borrower profiles.
Nearly 7% of mortgages were in some form of forbearance last week, a rate that continues to increase, albeit at a slowing pace. The risk of losing money on these loans has led originators to tighten lending standards for certain loan types and borrowers. While some borrowers could be quoted rates close to the lowest they've ever been, others either with less-than-excellent credit scores or seeking an atypical loan type – like jumbo or FHA loans – may be offered a much-higher rate.
With participation in forbearance programs likely to see continued increases, this disconnect across the mortgage industry is likely going to continue for the coming weeks.
The post Mortgage Rates Fall to New Lows, But Rates Differ Widely For Some Borrowers appeared first on Zillow Research.
via Mortgage Rates Fall to New Lows, But Rates Differ Widely For Some Borrowers
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