I hope you are having a wonderful summer. Our Seattle summer has been just beautiful – I don’t even mind the few days of rain we’ve had sprinkled in. Anyhow, you’re not reading this post for a weather report, are you? Let’s get back to what may impact mortgage interest rates this week! Today and Tuesday, we don’t have any economic indicators scheduled to be released. Wednesday is the big day with the minutes from the last Fed meeting being released.
On Wednesday, we’ll have the results of the Fed Meeting which is sure to influence mortgage rates as traders wait for clues as to what the Fed plans to do with quantitative easing. It is not anticipated that the Fed will make any changes to the Fed Funds rate at this meeting. Ben Bernanke will be holding a press conference on Wednesday following the Fed Meeting.
Here are some of the economic indicators scheduled to be released this week:
- Monday, June 17: Empire State Index
- Tuesday, June 18: Building Permits; Consumer Price Index (CPI); Housing Starts
- Wednesday, June 19: the FOMC Meeting
- Thursday, June 20: Initial Jobless Claims; Existing Home Sales; Philadelphia Fed Index
Remember, mortgage rates are based on mortgage backed securities (bonds) and when the stock market is rallying, mortgage rates tend to deteriorate as investors will trade the safety of bonds for the potentially stronger return found with stocks. The reverse is also true.
Want more details? Check out this week’s issue of Mortgage Market Guide Weekly.
If you would like me to provide you with a mortgage rates quote for your refinance or purchase for a home located anywhere in Washington state, where I’m licensed, click here.
The Fed just wrapped up their two day meeting and have issued their press release. Here are the tid-bits relating to keeping mortgage rates at artificially sweet and low levels.
To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee decided to continue purchasing additional agenc mortgage-backed securities at a pace of $40 billion per month and longer-term Treasury securities at a pace of $45 billion per month. The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction. Taken together, these actions should maintain downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative.
The Committee will closely monitor incoming information on economic and financial developments in coming months. The Committee will continue its purchases of Treasury and agency mortgage-backed securities, and employ its other policy tools as appropriate, until the outlook for the labor market has improved substantially in a context of price stability. The Committee is prepared to increase or reduce the pace of its purchases to maintain appropriate policy accommodation as the outlook for the labor market or inflation changes. In determining the size, pace, and composition of its asset purchases, the Committee will continue to take appropriate account of the likely efficacy and costs of such purchases as well as the extent of progress toward its economic objectives.
As expected, there was no change to the Fed Funds rate.
If you would like to lock in a sweet and low mortgage rate for your home purchase or refinance for homes located in Washington state, please contact me.
Mortgage rates continue to be very low, helping to spur on greater Seattle area home buyers and home owners wanting to refinance. If you’ve been considering locking in a low mortgage interest rate, now could be a good time to do so!
Here are some of the economic indicators scheduled to be released this week that may impact mortgage interest rates.
- Monday, April 22: Existing Home Sales
- Tuesday, April 23: New Home Sales
- Wednesday, April 24: Durable Goods Orders
- Thursday, April 25: Initial Jobless Claims
- Friday, April 26: Gross Domestic Product (GDP) and Consumer Sentiment Index (UoM)
Don’t forget, we have just over one month left to get FHA case numbers in order to avoid having FHA mortgage insurance on the life of the loan. This will impact FHA case numbers issued June 3, 2013 and later. FHA case numbers are typically issued after full application.
If you are considering buying or refinancing a home in Sammamish, Sumner, Sultan or anywhere in Washington State, where I’m licensed to be a Loan Officer, please contact me I’m happy to help you!
There are no economic indicators scheduled to be released today. What is impacting the direction of mortgage rates this morning is the small European country of Cypress. Banks are re-opening tomorrow and it’s widely expected that there will be a run on the Cypress savings accounts because of the tax that is being imposed on the citizens. The markets fear that this may spread to other countries in Europe.
Here are a few of the economic indicators scheduled for this week:
- Tuesday, March 26: Durable Goods Orders; S&P Case-Shiller Home Price Index; Consumer Confidence; New Home Sales
- Wednesday, March 27: Pending Home Sales
- Thursday, March 28: Initial Jobless Claims; Gross Domestic Product (GDP); Chicago PMI
- Friday, March 29: Personal Income and Personal Consumption Expenditures (PCE); Consumer Sentiment Index (UoM)
The bond market will close early on Thursday to begin the holiday weekend.
As I write this post (7:40 am 3/25/23) the DOW is down 16 at 14495. MBS (mortgage backed securities) is sligh up 3 bps.
This is also your last week to get a new FHA loan with current reduced mortgage insurance premiums. Effective with new FHA case numbers issued April 1, 2013 or later, FHA annual mortgage insurance premiums are going up. If you have an FHA loan that is in process with a mortgage company, contact your mortgage originator and make sure they have your case number.
If you are considering buying or refinancing a home located anywhere in Washington, I’m happy to help you! Click here if you would like me to provide you with a mortgage rate quote based on your personal scenario.
Mortgage backed securities are in the red this morning. Although rates are still very low, those who have not locked in their mortgage rates may be surprised to see the rate or cost for the rate is now higher. As the economy continues to show signs of improvement, investors will trade the safety of bonds (like mortgage backed securities) for stocks.
As of 8:30 am this morning, 3.625% is priced near “par” (with as little rebate credit or discount points) for a 30 year fixed rate-term refinance (apr 3.690). As you can see, mortgage rates are still very low however, they have been slowly trending higher. Rates change constantly and there are at least 10 factors that impact the pricing of mortgage rates. For your personal mortgage rate quote for your refi or home purchase anywhere in Washington state, click here.
This week is loaded with the FOMC rate decision on Wednesday and Friday’s Jobs Report. Here are some of the scheduled economic indicators and events that may impact mortgage rates this week.
Monday, January 28: Durable Goods Orders and Pending Home Sales
Tuesday, January 29: S&P Case Shiller Home Price Index and Consumer Confidence
Wednesday, January 30: GDP Chain Deflator, ADP National Employment Report, Gross Domestic Product (GDP) and FOMC Meeting
Thursday, January 31: Employment Cost Index (ECI), Personal Consumption Expenditures (PCE), Initial Jobless Claims and Chicago PMI
Friday, February 1: THE JOBS REPORT, ISM Services Index and Consumer Sentiment (UoM)
If your home is located anywhere in Washington state, where I’m licensed to originate, I’m happy to help you with your mortgage.
With the holidays upon us, we don’t have a lot of economic data scheduled for this week. Markets continue to be impacted with the “fiscal cliff” deadline approaching and Congress home for the holidays. Should a deal not come together to avoid falling off the “fiscal cliff” mortgage rates may actually improve as stocks may take a hit. The Bond and Stock Markets will close early today and reopen on Wednesday after the Christmas holiday.
Here are a few of the economic indicators scheduled for this week.
Tuesday, December 25: Merry Christmas!
Wednesday, December 26: S&P/Case-Shiller Home Price Index
Thursday, December 27: Initial Jobless Claims; New Home Sales; Consumer Confidence
Friday, December 28: Chicago PMI and Pending Home Sales
Next week will be another short week with the New Year holiday. ‘Tis the Season!
From my home to yours, we wish you a very Merry Christmas and Happy Holidays!
This week, mortgage rates will be following the drama surrounding our financial “fiscal cliff”. If traders see optimism that we will avoid “going over the cliff”, you may see mortgage rates trend higher.
Here are a few of the economic indicators scheduled to be released this week:
Monday, December 17: Empire State Index
Tuesday, December 18: NAHB’s Home Builder Confidence (this came in at the highest levels since 2006!)
Wednesday, December 19: Building Permits; Housing Starts
Thursday, December 20: Initial Jobless Claims; Gross Domestic Product (GDP); Existing Home Sales; Philadelphia Fed Index
Friday, December 21: Personal Consumption Expenditures (PCE); Personal Income; Consumer Sentiment (UofM)
As someone who grew up in Renton, a suburb of Seattle, whenever I hear the phrase “Fiscal Cliff” I have an image an evil villian like, Boris S. Wart. Boris S. Wort was the second meanest man in the world and was a character on the J.P. Patches show that many of us watched growing up.