The 30-year fixed-rate mortgage took a large jump this week, its largest weekly rise since 1987, Freddie Mac reports in its weekly mortgage market survey.
Fixed-rate mortgages soared with bond yields amid the Fed’s recent remarks on June 19 that it might soon reduce its bond purchase program, which has helped to keep mortgage rates at historical lows. The Fed plans to moderate its purchases of bonds later this year and end purchases altogether by the middle of 2014. 'Higher mortgage rates may dampen some housing market activity but the effect will be muted by the high level of buyer affordability, and home sales should remain strong,” says Frank Nothaft, Freddie Mac’s chief economist. See rates ...
For example, one borrower says an underwriter demanded a letter from his doctor that an illness he had would never come back. Another borrower says that an underwriter told her she needed to get verification from her employer on her employment status when she listed “homemaker” as her occupation. 
RPM Mortgage, based in San Francisco, resumed its “piggyback” loans in the first quarter of this year. The company had put its piggyback loans on hiatus in late 2007 during the financial crisis. A piggyback loan allows a borrower to put down 10 percent without having to pay private mortgage insurance. 
