This week is packed full of economic indicators that may influence mortgage interest rates, including the Fed meeting on Wednesday and Jobs Report on Friday. The Jobs Report carries a lot of weight with mortgage rates as it may indicate inflation. As the economy and employment improves, we may see signs of wage inflation. Inflation is the arch enemy of bonds, like mortgage backed securities – which mortgage rates are based on. World tensions may also impact mortgage rates as investors may seek the safety found in bonds.
Here are some of the economic indicators scheduled for this week:
- Monday, July 28: Pending Home Sales
- Tuesday, July 29: S&P/Case Shiller Home Price Index; Consumer Confidence
- Wednesday, July 30: ADP National Employment Report; Gross Domestic Product; FOMC Meeting
- Thursday, July 31: Initial Jobless Claims; Employment Cost Index; Chicago PMI
- Friday, August 1: The Jobs Report; ISM Index; Consumer Sentiment
As I write this post, 7:30 am on July 28, 2014, I’m quoting:
- 30 year fixed conventional: 4.125% (apr 4.273%) priced with 1.176 points. This is an increase of 0.266 in points from last week’s rate post – putting the pricing pretty darn close to where it was 2 weeks ago.
- 15 year fixed conventional: 3.250% (apr 3.464%) priced with 0.927 points. This is essentially the same as last week’s rate post (improved by 0.028 points).
The rates quoted above are based on a purchase in the greater Seattle area with a sales price of $500,000, 20% down payment and a loan amount of $400,000 closing by September 4, 2014 or sooner. The home buyers have excellent credit scores of 740 or higher.
Rates are subject to credit approval and may (will) change at anytime. This is just a very small sample of rates and programs that I have available. Please click here if you would like me to provide you with a rate quote. If you are interested in refinancing or buying a home located in Des Moines, Davenport, DuPont or anywhere in Washington state, please contact me – I’m happy to work with you as your Licensed Loan Originator.