The TEMPORARY payroll tax cut extension that Obama & Co coerced CONgress into approving this past month included a provision which requires the mortgage agencies Fannie & Freddie to collect 10 basis points (1 basis point = 1/100 of 1%) from each borrower each year on their outstanding balance and remit this money to the US TREASURY to offset the payroll tax cut and finance other government bureacracy.
This is really outrageous! First the tax cut is temporary, but this rate increase is permanent? Secondly, here we are once again requiring the reponsible folks that pay their bills to pay the cost for everyone that is not paying their own way!
In any case, the end result will be a rate increase of approximately 1/8-1/4 of 1% across the board for mortgages. If you are on the fence about refinancing or purchasing then I would suggest that you lock your rate NOW, before this is implemented (it may already be too late at some lenders).