By Ben Lane | HousingWire
Fannie Mae and Freddie Mac are lowing the benchmark interest rate for standard mortgage modifications for the third time this year, reports HousingWire staffer Ben Lane.
Over the summer, the two government-sponsored enterprises lowered the same benchmark interest rate a few days apart from one another. This time, though, the two were on the same page and are cutting the benchmark from 4% to 3.875%.
While this marks the first time the benchmark rate has been below 4% this year, it’s not the lowest the modification rate has ever been.
That came in August 2016, when the GSEs dropped the standard mortgage modification benchmark interest rate to the lowest level ever, 3.5%.
The new benchmark rate of 3.875% takes effect on Sept. 15, 2017.