Mortgage lenders are rolling out new promotions as they compete for borrowers in a fluctuating rate environment, with both refinancing and purchase incentives becoming more common.
United Wholesale Mortgage recently introduced two offers: one providing a 75 basis point boost on conventional and government refinancings, and another offering a $600 appraisal credit for purchases, following the expiration of its 40th anniversary promotion. Mortgage brokers who had Pro Elite 100+ status in January or February or have it for March, will get an extension on the refinancing promo through April.
Other lenders, including Carrington Mortgage Services, Silver Hill, Rocket, and Chase, are also using pricing credits and limited-time rate discounts to attract business, highlighting a broader push in the market to stimulate demand amid mortgage rates hovering around 6%.
Today's mortgage rate environment
While rates for the conforming 30-year fixed ended February at 5.9% according to data provided by Optimal Blue, the following Monday it was up to 5.98% and on Tuesday reached 6.02% following the start of the Iran conflict.
Lender Price data on the National Mortgage News website was
While the 10-year Treasury yield, a benchmark to price long-term mortgages, reached a high of 4.12% on Monday, it ended the day at 4.06%, up 1 basis point from its previous close. On Wednesday, the 10-year ended the trading day near 4.08%, although earlier, the yield peaked at 4.09%.
Are consumers refinancing following the rate drop?
"There is still a ton of refinance opportunity available in the market and this incentive creates a win-win, helping borrowers lower their monthly payment while also generating new business and strengthening existing relationships for brokers," a UWM spokesperson said in a statement.
The Mortgage Bankers Association's Weekly Application Survey released Wednesday morning found volume up 11%, but the data period ended on Feb. 27, before the Iran conflict began.
Refinance application volume for the week was up 14.3% over the prior seven days, while purchases increased 6.1% on a seasonally adjusted basis.
Refis made up almost 60% of application volume for the week, the MBA said.
UWM's purchase promotion
UWM's $600 appraisal credit promotion, also for conventional and government mortgages, runs through April, and is available to all brokers during this time period.
The company's last promotion, UWM 40, was
UWM is not currently offering any other promotions or pricing incentives right now, the spokesperson added.
Rate promos from other mortgage lenders
Other third party originators are also running promotions. For example, Carrington Mortgage Services in February announced two programs in its third party origination business.
First was the Purchase Power Play, which gave a 50 basis point price credit for loans between 75.01% and 80% loan-to-value ratio, with a FICO score over 700.
Separately, for
Borrowers who haven't owned an investment property in the last three years can qualify at those LTV and FICO limits. Ownership structures can be LLCs or corporations.
This is a debt service coverage ratio product, with Carrington not requiring income or employment verification. It has a 40-year fixed-rate term.
Silver Hill is a commercial and non-qualified mortgage lender which works with residential mortgage brokers. In February the Bayview Asset Management subsidiary was offering a 25 basis point rate improvement on certain commercial transactions.
As part of the
On the retail side, Chase Home Lending is offering a limited-time purchase and refinance rate discount, according to its website. This offer only runs through March 8.
To qualify, the borrower must meet the minimum credit score and loan-to-value requirements of the loan product selected, the website said. Furthermore, this rate discount may differ by state.
The website also said with this promo, Chase allows customers to combine with other offers, like the Chase Relationship Pricing Program and the Chase Homebuyer Grant, to save even more.
