Rates are pretty good...still. Whether it's 5.25% or 5.75% , it's still good! More importantly, you should be aware of the new HVCC policy which can delay your closing or cost you extra money if you switch lenders and are attempting to use the same appraisal.
HVCC stands for home valuation code of conduct. This "code" of conduct was adopted by Fannie Mae and Freddie Mac as of June 1. Andrew Cuomo from New York did an "end run" around the legislative process and went directly to Fannie Mae and Freddie Mac to adopt this policy. This is a policy that was introduced in response to the "flipping" of homes that caused a lot of people to lose their homes due to fradulent practices concerning the appraisal process.
In short, mortgage originators may not order their appraisals anymore nor can they even speak to the appraiser regarding value. All appraisals, except on FHA and VA loans, must be ordered through a "management company". This is another layer to the already burdensome process of getting a mortgage. Appraisal fees immediately went from an average of $350.00 to $400.00.
The good news is that the National Association of Realtors and enjoined the lawsuit that the National Association of Mortgage Brokers has initiated and they are calling for an immediate moratorium on the HVCC procedure for the next 18 months. Let's hope that they are successful.
If I can help you with any mortgage questions and how this HVCC may or may not affect your upcoming home purchase or refinance please contact me and I will be happy to help guide you through the process.
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