When it comes to shopping around for a new home, buyers should also shop around for the right mortgage lender, according to Fannie Mae's latest National Housing Survey. When studying the mortgage shopping experience homebuyers navigate these days, the authors of the survey found that two-thirds of buyers‒‒particularly the young and those who’ve already bought homes‒‒obtain multiple mortgage quotes, though newbies to the process typically rely on friendly advice to find a suitable lender and terms.
According to the report, about 16 percent of buyers under age 30 shop around for quotes, compared to 5 percent of those above 50. Nearly a third of buyers earning at least $75,000 per year shop around, compared to just 1 percent of those who make less. Experienced homebuyers are unlikely to say that a referral from a real estate agent or a mortgage specialist influenced their choice of lender, unless they earn less than $75,000 a year.
The Federal Reserve announced Monday that it wants public comment on changes to Regulation D, which requires Reserve banks to pay one-quarter of a percent interest on “balances up to the top of the penalty-free band.” This reflects a bank’s reserve balance requirement, plus $50,000, or 10 percent of the balance, whichever is more. The Fed also wants to amend the way it calculates those rates – it wants to permit interest payments on certain balances to be based on a daily rate, rather than on a maintenance period average rate, as it has existed for years.