Spring Pricing Special for Affordable and Sustainable Homeownership
March 22, 2024
Mortgage rates have remained stubbornly high in 2024, after dropping approximately a point, from nearly 8%, in the fourth quarter of 2023. Persistently high rates paired with historically high home prices and low housing supply continue to strain many prospective homebuyers’ ability to purchase. Our mission is to partner with our members to support their community investment activities, including support for affordable and sustainable housing and economic development through all market environments.
Spring Season MPF® Traditional Price Special
To help alleviate some of these overall market pressures and improve housing affordability, we are offering a spring pricing special on certain low loan balance loans, which often support low and very low income borrowers located in lower income areas. Beginning today, March 22, 2024, participating financial institutions (PFIs) can see up to 37.5 basis point (bps) price improvement on 30-year conventional loans sold through Mortgage Partnership Finance® (MPF) Traditional with original loan balances between $150,000 and $200,000. For the special, the improved price will only be available at prevailing mortgage rates sold under the 150K – 200K low loan balance grids.
The grid below shows an example of which note rates and loan sizes are eligible:
| Example Loan Sizes and Note Rates Eligible | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| GNR | FX30 | FX30 85K | FX30 110K | FX30 125K | FX30 150K | FX30 175K | FX30 200K | FX30 225K | FX30 250K | FX30 275K | FX30 HB |
| 5.500 | |||||||||||
| 5.625 | |||||||||||
| 5.750 | |||||||||||
| 5.875 |
Spring Special | ||||||||||
| 6.000 | |||||||||||
| 6.125 | |||||||||||
| 6.250 | |||||||||||
| 6.375 | |||||||||||
| 6.500 | |||||||||||
| 6.625 | |||||||||||
| 6.750 | |||||||||||
| 6.875 | |||||||||||
| 7.000 | |||||||||||
| 7.125 | |||||||||||
| 7.250 | |||||||||||
| 7.375 | |||||||||||
Spring Special Details:
- Special begins March 22, 2024, and will be considered for extension dependent on the level of mission-related loan volume.
- Applicable on 30-year conventional loans with original loan balance between $150K and $200K. Borrower income is not limited.
- Special note rates may change daily but are expected to be at and slightly below the current prevailing market rate.
- All PFIs are eligible, subject to existing volume caps.
- Take advantage by simply logging into eMPF® and executing a delivery commitment!
Maximize Your Competitive Advantage With Our Downpayment Plus® Programs (DPP®)
PFIs can further improve affordability, increase their competitiveness, and win new customers by pairing the MPF Program with our DPP programs. Homebuyers with incomes at or below 80% of area median income may be eligible to receive a forgivable grant through your member institution. Members can offer grants up to $10,000 to their borrowers to assist with down payment and closing costs. When pairing DPP with MPF Traditional, members may offer a lower rate to their customers through the spring special and assist with down payment and closing costs, ultimately supporting homebuyers who may not otherwise have been able to purchase a home in the current market environment.Reservations are available on a first-come, first-serve basis with each member now able to offer up to $1,000,000 in grants in 2024, an increase of $300,000 from 2023. You can view more information about our DPP program and get access to marketing materials on fhlbc.com.
If our members have any questions, please reach out to your Sales Director.