Mortgages Can Be Complicated, but We Have You Covered.

The spring housing market is gaining momentum, but will mortgage rates cooperate? Despite a flurry of economic headlines, mortgage rates held steady last week. Four consecutive weeks of mortgage rates and the 10-year yield gradually dipping have helped the housing market heat up ahead of spring. In that time, we've seen three weeks of positive year-over-year purchase application growth. If this trend continues with rates around 6.7%, we could see a boost in home sales if mortgage rates manage to dip closer to 6%. Although it’s all but guaranteed that the Fed won’t cut rates on Wednesday, Fed Chair Jerome Powell's press conference could provide key insights into the road map for lower rates. His remarks, along with the Fed’s Summary of Economic Projections (SEP)—which outlines updated projections for unemployment and the broader economy—could trigger mortgage rate movement later this week. Last Week's Mortgage Rate Recap Rates Were Steady Mortgage rates ended the week roughly where they started despite significant headlines. Inflation showed a slight improvement in both the Consumer Price Index (CPI) and Producer Price Index (PPI) reports—measures that track consumer prices and wholesale prices, respectively. Meanwhile, a stock market selloff dragged the S&P 500 even lower, but mortgage rates remained stable. This Week's Mortgage Rate Forecast Rates Could Be Volatile We have our second Fed meeting of the year concluding on Wednesday. While the Fed is widely expected to hold rates steady this month, Powell’s post-meeting press conference could cause volatility. The Fed has previously indicated plans to stop quantitative tightening, or balance sheet reduction, this year. Any mention of the timing for that shift could influence rates. Once the Fed halts balance sheet reduction, they’ll need to reinvest up to $45 billion back into Treasuries, which could help drive mortgage rates lower. Mortgage rates move every day. Make sure to stay in touch with your UMortgage Loan Originator throughout the week for periodic updates to make sure you or your clients lock in the best deal possible.

How the CFPB impacts homebuyers and how they can protect themselves from financial risks The Consumer Financial Protection Bureau (CFPB) plays a key role in protecting consumers from unfair, deceptive, or abusive financial practices, particularly in the mortgage and homebuying space. However, ongoing discussions about the CFPB’s structure and role have raised questions about what potential changes could mean for homebuyers, real estate agents, and mortgage professionals. Regardless of how the CFPB evolves over the coming months and years, understanding its impact on the mortgage industry and working with trusted professionals remains essential for ensuring a smooth and transparent home financing experience. What is the CFPB? The Consumer Financial Protection Bureau is an independent agency within the Federal Reserve System that enforces consumer protection regulations across the financial sector. Its jurisdiction includes banks, credit unions, debt collectors, mortgage servicers, and other financial institutions operating in the U.S. The CFPB was established in 2011 following the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which Congress enacted in response to the 2008 financial crisis. The agency's primary functions include: Writing and enforcing rules to prevent deceptive financial practices Examining financial institutions to ensure compliance with consumer protection laws Monitoring financial markets and trends Collecting and tracking consumer complaints By enforcing regulations, the CFPB helps create a more transparent mortgage process for homebuyers and homeowners alike. Which CFPB Regulations Impact Homeowners and Homebuyers? Following the subprime mortgage crisis, which contributed to the 2008 financial meltdown, the CFPB implemented several key regulations to improve transparency and fairness in the mortgage process. Some of the most impactful changes include: Increased Transparency on Loan Fees & Closing Costs The TILA-RESPA Integrated Disclosure (TRID) rule ensures borrowers receive clear, standardized disclosures about their loan terms and associated costs. The Loan Estimate and Closing Disclosure documents provide detailed breakdowns of fees, allowing homebuyers to make informed decisions before committing to a mortgage. Read this guide on how to interpret your Loan Estimate to better understand the costs that make up your mortgage. Protection Against Discriminatory Lending Practices The Equal Credit Opportunity Act (ECOA) prohibits lenders from discriminating against borrowers based on race, gender, disability, or other non-financial factors. The CFPB enforces this law to prevent unfair lending practices such as redlining, where certain communities are denied equal access to credit. Take Legal Action Against Consumer Deception The CFPB takes legal action against lenders who engage in deceptive marketing, excessive fees, or unethical lending practices. Over the years, the agency has issued fines against multiple financial institutions for misleading advertising, unfair loan terms, and discriminatory lending. For example, in 2024, the CFPB ordered NewDay USA to pay a $2.25 million civil penalty for misleading cost comparisons that encouraged borrowers—particularly service members and veterans—to take out cash-out refinances, a practice known as loan "churning." Other enforcement actions have targeted mortgage servicers who failed to provide accurate payoff information and lenders who charged illegal junk fees. Ultimately, the CFPB's regulations aim to make the mortgage process less deceptive, more transparent, and more equitable for all eligible homebuyers. Why Homebuyers Shouldn’t Panic Over CFPB Changes Recent changes at the CFPB have fueled speculation within the mortgage industry, but for homebuyers, this is not a cause for alarm. Here’s why: The Mortgage Industry Has Matured The 2007-2008 financial crisis forced the industry to adopt stricter guidelines, licensing requirements, and consumer protections. While the CFPB has played a role in enforcing these regulations, today’s mortgage professionals operate in a fundamentally different landscape—one where transparency and ethical lending are already ingrained in industry standards. The CFPB’s Role Has Shifted Over Time While the CFPB was originally created to correct predatory lending practices, excessive red tape has made the mortgage process unnecessarily complex in some cases. Adjustments to the agency’s structure could help streamline regulations without compromising consumer protections. Why It’s Important to Work With Mortgage Professionals You Trust Regardless of what happens to the CFPB in the coming months or years, homebuyers should prioritize working with mortgage and real estate professionals who act in their best interest. The CFPB has helped enforce transparency, fairness, and ethical lending practices; this level of strict oversight and enforcement has advanced the mortgage industry and its loan originators. Even without the CFPB watching over their shoulders, these standards remain upheld. An experienced LO who values long-term client relationships will take the time to explain mortgage options, closing costs, and potential risks, just as the CFPB’s guidelines encourage. They will provide clear and honest disclosures about loan terms, ensuring that borrowers fully understand their financial commitments before signing. Ultimately, while government regulations provide a safety net, the best protection for homebuyers will always come from working with mortgage and real estate professionals who prioritize their clients’ long-term financial health. If you’re interested in starting your mortgage journey or simply want to learn more about your options, fill out this form or check out our directory to connect with a LO in your area.

Last Updated: March 11th at 12:16pm ET On March 4th, President Donald Trump announced new tariffs, imposing a 25% duty on nearly all imports from Mexico and Canada and increasing tariffs on Chinese imports to 20%. While tariffs on items protected by the United States–Mexico–Canada Agreement (USMCA) have been delayed until April, understanding their potential impact on the homebuying process could help you avoid unexpected costs when purchasing a home or helping your client buy their home. Many economists believe that these tariffs will have a noticeable impact throughout the housing economy, including housing costs and mortgage interest rates. While these changes could affect home prices and mortgage rates, understanding their impact can help you make informed homebuying decisions and ensure that you’re taking the most affordable route possible to buy a home. Why is President Donald Trump Imposing Tariffs on Canada, China, and Mexico? The Trump administration has cited several reasons for these tariffs, including boosting U.S. manufacturing, addressing trade imbalances, and increasing revenue for the U.S. Treasury. Increase U.S. Manufacturing: Trump has cited his primary reason for imposing these tariffs as bringing more business manufacturing back to the U.S. In his address to Congress, he said, “If you don’t make your product in America… you will pay a tariff, and in some cases, a rather large one.” Balance the Budget: Contrary to common belief, tariffs are paid by American companies importing goods, not by foreign governments. These payments go to the Federal Reserve and would help reduce the national deficit. Prevent Flow of Illicit Drugs into the U.S.: Trump has referenced the illicit flow of fentanyl into America as a reason for tariffs on its North American neighbors and China. How Tariffs Will Impact Home Prices & Construction Costs Home builders heavily rely on imported goods like building materials and appliances to minimize building costs. Here’s how these tariffs will impact homebuilders and subsequently homebuyers looking to build a home. Homebuilders Rely on Imported Goods A recent report by John Burns Real Estate Consulting (JBREC) showed that homebuilders import 31% of sawmill wood products, with 73% of those imported products coming from Canada. Builders also import 73% of small appliances for new homes, with 67% of those imports coming from China. The 25% tariff on goods imported from Canada & Mexico and 20% tariff on goods from China will directly impact the cost of timber, steel, aluminum, small & large household appliances, and building hardware. Trump’s Plan to Offset These Costs To help offset rising costs, the administration has taken steps to increase domestic timber production, including an executive order aimed at expanding logging operations. On Saturday, March 1st, Trump signed an executive order focused on the immediate expansion of American timber production. It directly cited increased forest management, wildfire risk reduction, and reduced regulations that might slow down timber production. As of March 6th, there have been no additional announcements regarding domestic production of other building materials. Will Tariffs Affect Mortgage Interest Rates? The implementation of tariffs on imported goods will have greater economic impacts than the cost to build a home. This can be seen directly through volatility in the stock market as Trump proposes and delays tariffs against China, Canada, and Mexico. Slower Economy Leads to Lower Mortgage Rates Tariffs can create uncertainty in the stock market. When stocks become volatile, investors often shift money into U.S. Treasury bonds, causing bond yields to drop. Since mortgage rates tend to follow the 10-year Treasury yield, this could lead to lower borrowing costs. Risk of Increased Inflation While tariffs might help lower mortgage rates by slowing consumer spending, they can also contribute to inflation by increasing the cost of goods. The Federal Reserve closely monitors inflation trends when setting interest rate policies. During a Q&A session at an economic forum on March 7th, Jerome Powell, Federal Reserve Chair, said, "In a simple case where we know it's a one-time (price hike), the textbook would say look through it," when asked if tariffs would have inflationary effects. "Uncertainty around the changes and their likely effects remains high," continued Powell. "As we parse the incoming information, we are focused on separating the signal from the noise. As the outlook evolves, we do not need to be in a hurry, and we are well positioned to wait for great clarity." How Homebuyers Should React to Tariffs While tariffs will have an impact on the cost to buy a new home, there are plenty of things that homebuyers can do to protect themselves from inflation and grow their financial portfolio. Buy When You’re Ready Rather than trying to time mortgage rate changes, it's often best to buy when you're financially prepared. Mortgage rates are volatile; they can gradually increase and decrease every day. Home prices fluctuate too, but when you look at the average price of houses sold in the U.S. over the last decade and beyond, the lines largely just go up. Graph displaying average sales price of new homes, average sales price of all homes sold, and median sales price of all homes sold in the U.S. dating back to 1960. Historically, real estate is one of the safest investments you could make. Beyond the price of your home appreciating over time, you’ll also have stable monthly mortgage payments, receive several tax benefits that will help lower your tax bill, and earn equity with every mortgage payment that can be leveraged in the future. Consider Existing Homes on the Market Instead of New Builds As building costs increase, it might make more sense to consider homes that have already been built and lived in. In many cases, they’re more affordable than new builds and offer more negotiation power when it comes to price, closing costs, and repairs. Considering things like construction delays and building codes, you can typically move into an existing home sooner—typically within 30-60 days after closing. And of course, we have to mention the unique charm that comes with older homes. Touches of craftsmanship like crown molding, hardwood floors, and intricate stone & ironwork add plenty of personality to a home that’s much more expensive to replicate in a new build. Work With Mortgage & Real Estate Professionals You Trust As always, the best way to protect and grow your financial health through homeownership is to work with mortgage & real estate professionals you trust. A UMortgage Loan Originator will walk you through all your loan options, shop rates with you, and, after you’ve closed on your mortgage, help you continue to leverage the wealth-building benefits of homeownership. If you’re ready to start exploring your pathway to homeownership or are curious how you can leverage the equity you’ve built through the home you own, fill out this form to find a UMortgage Loan Originator near you!

The USDA is making it easier for homebuyers to finance manufactured homes by expanding its manufactured housing provisions nationwide starting March 4, 2025. This update means more affordable homeownership options for moderate- to low-income buyers, especially in rural areas. Here’s everything you need to know about this change and how it could help you achieve homeownership without breaking the bank. What is a Manufactured Home? A manufactured home is a factory-built home that meets the U.S. Department of Housing and Urban Development (HUD) construction standards. Unlike mobile homes built before 1976, manufactured homes are permanently attached to a foundation and must meet modern safety and energy efficiency regulations. They’re a great option for buyers looking for an affordable, high-quality home in rural and suburban areas. What is a USDA Loan? A USDA loan is a government-backed mortgage designed to help homebuyers in eligible rural and suburban areas purchase homes with 0% down payment. These loans are part of the U.S. Department of Agriculture’s mission to promote homeownership in communities where conventional financing options may be limited. What Are The New USDA Manufactured Home Guidelines? Previously, USDA loans had strict limitations on financing manufactured homes. The new expansion introduces the following key changes: Existing manufactured homes are now eligible if they meet certain safety and quality standards. Single-wide and double-wide manufactured homes are now approved nationwide. Financing is now available for energy-efficient manufactured homes in nonprofit land-lease communities and on Tribal lands. Homes must meet updated eligibility criteria, including being built after January 1, 2006, and being permanently placed on an approved foundation. The dealer approval process has been simplified, making it easier to buy a home from a USDA-approved seller. How to Qualify For a USDA Home Loan To qualify for a USDA loan on a manufactured home, buyers must meet these requirements: Minimum credit score of 580 Primary residence only (no second homes or investment properties) Property must meet USDA eligibility criteria, including foundation and age requirements Income limits apply based on location and household size Homes must not have been previously installed in another location How It Benefits Homebuyers The USDA Manufactured Home Program Expansion makes homeownership more accessible by increasing affordable housing options. Here’s why this change is a big deal for buyers: More choices: You can now finance existing manufactured homes instead of just new ones. Affordable payments: With 0% down and low mortgage insurance, monthly payments remain budget-friendly. Low Private Mortgage Insurance (PMI): The 0.35% PMI keeps your monthly payment low. Increased flexibility: Buyers can purchase in land-lease communities, Tribal lands, and more rural areas. Faster approval process: A streamlined dealer approval process speeds up home financing. This expansion is a major step forward that’s making homeownership more accessible for families who might not qualify for conventional mortgages. If you’re interested in exploring your eligibility and homebuying opportunities in your area, fill out this form or get connected with a UMortgage Loan Originator near you!