The average 10-year Treasury rate rose by 26 bp last week, and today it’s up 8 bp above last week’s average. We’re still in territory where the Principal Limit is maxed out, and the SFSA and tenure conversion factors are the only things moving with rates. Higher rates and margins mean more money since higher rates give higher SFSA’s.
This week, all Treasury-based HECM’s with a margin of +300 or less will pay the HECM maximum Principal Limit. Ditto for LIBOR-based HECM’s with margins of +291 or less.
Reverse Mortgage Rate Updates are brought to you by Jerry Wagner & Ibis Reverse Mortgage Software – The Industry Standard Since 1995. This is not just a slogan — six of the top 10 reverse mortgage originators plus NRMLA and the AARP use Ibis Software for their websites, retail and wholesale businesses.