Here are some of the economic indicators scheduled to be released this week which may impact mortgage rates:
Monday, April 15: Empire State Index
Tuesday, April 16: Building Permits; Consumer Price Index (CPI); Housing Starts; Industrial Production and Capacity Utilization
Wednesday, April 17: Fed’s Beige Book
Thursday, April 18: Initial Jobless Claims and Philadelphia Fed Index
Remember, mortgage rates are based on mortgage backed securities. When the stock market is deteriorating, mortgage rates tend to improve (or not decline) as investors will seek the safety of bonds over the quicker profits potentially found in stocks. And when the stock market is rallying, mortgage rates tend to trend higher as investors seek a higher return from stocks.
What also impacts mortgage rates is the Fed’s buying of mortgage backed securities to keep rates lower while unemployment is higher. By keeping mortgage rates low, the housing market has improved by making mortgages more affordable (and tempting with extremely low rates) to buy homes and also by helping Americans reduce their mortgage payments by hundreds of dollars each month, which puts more cash back into the economy.
Speaking of refi’s, last week, HARP 2.0 was extended through 2015.
Another important date to remember is May 31, 2013. If you’re considering an FHA refinance or streamline refi or are in the process of buying a home using FHA financing, you’ll want to start soon. FHA case numbers issued June 3 or later will have mortgage insurance for the life of the FHA loan (until it is refinanced or paid off).
If you are interested in buying or refinancing a home located in Bellingham, Bainbridge Island, Bellevue or anywhere in Washington state, I’m happy to help you. Click here for a mortgage rate quote.