The pendulum is swinging back again. After years of scrooge like actions by the banks, things are changing.

Rates are up to 4.6% for a 30 year fixed. If you hear lower rates quoted its because they are charging lots of points and fees. That’s the difference between the rate and the apr. The wider the difference, you more junk you are paying. The best rates are ones that have the quoted rate and the apr as the same.

This  amazingly fast mortgage rate climb continues to be one of, if not THE most significant move in the modern history of mortgage rates (in terms of the pace of change)

The upside is that banks are now loaning more freely than they have been in the last few years. As rates climb, there is less refinancing going on so the banks are loosening up They are accepting lower downpayments and lower ficos

 In the last 2 years, there was a sevenfold increase in down payment requirements of between 3.5 and 5%/ THESE ARE NOT FHA LOANS. Even Wells Fargo is offering 3% downpayment loans.

Piggyback loans have returned. That’s also called a 80-10-10. You put down 10% and have a fisrt of 80% and a 2nd of 10%. It’s cheaper than having mortgage insurance.

In addition, the debt to income ratio is growing again. Things are not like the were before- you still have to qualify. It’s starting to look like a normal mortgage market.