Mortgage rates are based on mortgage backed securities (bonds) and often change throughout the day. Since they are based on bonds, mortgage rates will often improve when the stock markets are deteriorating as investors will trade the safety of bonds for the potential greater return found with stocks. The reverse is also true. World events as well as scheduled economic indicators may impact the direction of mortgage interest rates. Watch for signs of inflation, which erodes the value of bonds and therefore, causes mortgage rates to trend higher.
Here are some of the economic indicators scheduled to be released this week:
Monday, June 23: Existing Home Sales
Tuesday, June 24: S&P/Case-Shiller Home Price Index; New Home Sales; Consumer Confidence
Wednesday, June 25: Gross Domestic Product (GDP); Durable Goods Orders
Thursday, June 26: Personal Consumption Expenditures (PCE); Initial Jobless Claims
Friday, June 27: Consumer Sentiment Index (UoM)
Mortgage rates continue to improve.
As I write this post (7:30 am on June 23, 2014), I’m quoting:
- 30 year fixed: 4.125% (apr 4.253%) priced with 0.789 points. This is an improvement of 0.349% in fee (reduction in points) compared to last Friday’s rate post.
- 15 year fixed: 3.125% (apr 3.394%) priced with 1.155 points.
Rates quoted above are based on a conventional mortgage with a sales price of $500,000 and a loan amount of $400,000 (20% down payment). Home buyers in the greater Seattle who have excellent credit with scores of 740 or higher. The purchase of this primary residence closing by July 31, 2014 or sooner.
Mortgage rates are subject to credit approval and change constantly. In fact, by the time I publish this or you are reading this post, rates may have already changed (remember, they’re based on bonds and are similar to the stock market). This is just a very small sample of rates and I have many other mortgage programs available. I’m happy to provide you with your personal rate quote for your home purchase or refinance of property located anywhere in Washington state.