Neil Lauzon - EXP Realty

On June 1st the stress test rate will move from 4.79% to 5.25%.

For qualifying, this means that everyone will qualify for approximately 4.5% less. The median-income family currently qualifies for a mortgage of $442,000 and will now qualify for $422,000 based on the new rules. The qualifying rate will now be more than 300 points higher than actual contract rates in most cases. The concern is that we will eventually have to return to normal rates, although the highest average 5-year rate since 2013 was 3.76%.