Mortgage Rates are still low

Freddie Mac released their weekly Prime Market Mortgage Survey (PMMS) today showing that last week, conforming mortgage rates were fairly steady after trending higher since the beginning of this year.

The mortgage rates quoted in the PMMS report are priced with some points and do not include closing cost.

Freddie Mac warns that rates could move higher if signs of inflation persists. From Freddie Mac’s PMMS report:

“Mortgage rates have been holding steady over the past two months. The U.S. weekly average 30-year fixed mortgage rate was 4.42 percent in this week’s survey. Rates have bounced around 4.4 percent since mid-February. Rates could break out and head higher if inflation continues to firm. The U.S. Bureau of Labor Statistics reported this week that the Consumer Price Index increased 2.4 percent over the 12 months ending in March, the largest 12-month increase in a year. Members of the Federal Reserve’s Federal Open Market Committee are looking at inflation indicators to help determine the appropriate path for policy.

“If inflation continues to trend higher, we may see two or three more rate hikes from the Fed this year, and mortgage rates could follow. For now, mortgage rates are still quite low by historical standards, helping to support homebuyer affordability as the spring homebuying season ramps up.”

As mortgage rates are based on bonds (mortgage backed securities), signs of inflation will push mortgage rates higher. Volatility with the stock market will impact rates too. When the markets are soaring, investors will choose stocks over bonds and when markets are tanking, mortgage rates tend to benefit as investors will seek the safety of bonds.  Another factor that influences the direction of mortgage interest rates is world events, such as the growing tension between Russia and the United States. Global dramas such as this tend to keep mortgage rates lower as investors prefer the safety of bonds during times of uncertainty.

Bottom line, if you have been considering refinancing, I would act sooner than later. In my opinion, the current volatility in the markets are simply slowing down the inevitably of higher mortgage interest rates.

If I can help you with a refinance or purchase of a home located anywhere in Washington state, I am happy to help you! Click here for a no-hassle mortgage rate quote.

Higher Property Taxes Impacts Everyone

If you live in King, Pierce, Snohomish or many other Washington state counties, you have some sticker shock when you see your 2018 property taxes.  King County is reporting that the average home will see their taxes increase by 17%.  The City of Sumner in Pierce County may see a whopping 22% jump to their property tax. [Read more…]

Mortgage Rates March Higher

Freddie Mac released their Prime Mortgage Market Survey today showing mortgage rates continuing to trend higher.


The PMMS report is based on an average of conforming rates from last week. This is the seventh consecutive week that mortgage rates have moved higher based on this report.

Historically, our rates are still very low. Don’t believe me? Check this out. [Read more…]

Got Bonus? Part 2: Stocks

On Part 1 of Got Bonus, I covered how lump sum cash or increases to salary are treated when it comes to qualifying for a home mortgage loan. In this post, I’ll address how bonuses that are in the form of company stock are treated by lenders. [Read more…]

Got Bonus?

The Seattle Times announced yesterday that Boeing employees will be receiving a record $600 million in bonuses starting next week. From the Seattle Times:

“Boeing’s nearly 66,000 current employees in the state will be eligible for the bonuses. More than 6,000 more who worked at least part of last year before leaving the company will get a partial bonus, prorated according to how long they worked last year.” [Read more…]

Mortgage interest rates moving higher

This morning, Freddie Mac released their weekly report on the direction of conforming mortgage rates. The graph from the Prime Mortgage Market Survey is quite telling. Mortgage rates have been pushing higher for the last 6 months. As the economy improves, it would be likely to see rates continue in this direction.  The 30 year fixed is up 0.44 in rate from the low of 3.78 recorded in September 2017 and has not been reported this high since last March.  Click here for quote with current mortgage rates.

 

[Read more…]

eBook: Your First Home Mortgage

I have just updated my guide on how to finance your first home.

If you’re thinking about buying a home located anywhere in Washington state, even if it’s a couple years away, I am happy to help you! You really cannot start the preapproval process too soon. If I can help you, please contact me.

NEWS FLASH: Mortgage Master now offers Bridge Loans

I’m pleased to announce that Mortgage Master Service Corporation is once again, offering bridge loans to our clients. A bridge loan allows a home owner to tap equity from their current home for down payment on their next home before their current home has sold.  With a bridge loan, there are no monthly mortgage payments and the interest that accrues is paid off at the closing of the buyer’s listed home. [Read more…]