Refinance rates drop as Fannie Mae removes adverse market fee.

Refinance rates drop as #fanniemae and #freddiemac drop the adverse marketing fee. This will enable more of the 12 million home owners that have not already refinanced take advantage of these new lower rates.

Tumbling mortgage rates just went even lower following news that an unpopular fee on refinances is coming to an end.
A surcharge of one-half percent, meant to offset pandemic related losses for Fannie Mae and Freddie Mac, created a stir when it was implemented last summer; but now homeowners can breathe easy since the charge will be eliminated.

Now that lenders don’t have to pay an Adverse Market Refinance Fee, they can pass on the cost savings to borrowers. The Enterprises (Fannie Mae and Freddie Mac) got rid of this fee earlier than expected so that borrowers will be able take advantage of refinance interest rates while they’re still near record lows.

Mortgage interest rates are expected to rise by 2023 according some estimates-they may approach 5% then!