Mortgage Market Update for the Week of June 24, 2024

Who’s Buying Homes in this Market?

The Existing Home Sales was released yesterday which reports on the closings of existing single-unit homes.

Would you be surprised to know that last month, 31% of all sales were first-time homebuyers?

28% of the home buyers paid cash. I have a program that actually allows to essentially make a cash offer so that you can compete with cash buyers.

30% of homebuyers bought the home over the list price. This could be from a bidding war or perhaps they bid over the list price to have offset having the seller pay for closing costs, such as a seller paid interest rate buydown. If you’re considering making an offer on a home, I have a Bid Over List report that shows you approximately how long it will take for the home to appreciate to your bid price.

Check out my latest video where I talk more about this, including trends in the greater Seattle area.

If you’re thinking about buying a home, please contact me! I am happy to help you review your possible financing options and create a plan.

Mortgage Market Update for the Week of June 17, 2024

My apologies for being a day late publishing this video! Without further ado…

It’s Fed Day! [LIVE POST]

In a couple of hours, the FOMC will wrap up their two-day meeting with an announcement on their decision on if they are going to make adjustments to the Fed funds rate. The Fed funds rate does not directly affect mortgage interest rates (except for HELOCs) however, it does influence the direction of mortgage rates. This is because the Fed’s decision is based on the level of inflation. Mortgage rates react negatively to inflation as mortgage rates are based on bonds (mortgage-backed securities/MBS). So, when the Fed raises the funds rate or keeps the rate unchanged due to inflation being too high, mortgage rates tend to move higher. If inflation is in line, we often see mortgage rates improve.

It’s not just the announcement today that will catch the interest of bond traders, it’s what the Fed will say with the prepared announcement, answers to the press, prepared supporting documents and other commentary from FOMC members that may impact mortgage interest rates.

As I’m writing this portion of this post (8:40 am PST), MBS are up about 47 basis points. (If you follow my weekly mortgage updates, this means that we currently have a big green candlestick on the charts which translates to lower mortgage rates). This is because May’s CPI (Consumer Price Index) reported this morning that inflation is showing signs of cooling. Yay! I’m glad this report was released prior the Fed’s announcement and I obviously hope that we continue to have reporting showing inflation is calming.

It is widely anticipated that there will be no change to the Fed funds rate today. The Fed will be releasing the Statement of Economic Projections which includes their “dot plot” that shows when the fed members project moving the funds rate (most likely lowering).

I will continue to update this post throughout the day. Stay tuned!

UPDATE 11:00 AM: The Fed leaves rates unchanged, stating: “The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities.”  MBS (30 year 6%) is trending lower around 36 basis points.


Weekly Mortgage Update for June 10, 2024

Here’s a teaser: this week we’ll hear from the Fed when their two-day meeting wraps up on Wednesday. Would you like to know what else is impacting mortgage interest rates? Check out my latest video!

Complete Guide to Accessory Dwelling Units

Washington is in the top 3 states for leading the country with the addition to accessory dwelling units! This type of housing makes it possible for providing housing to aging parents, adult children who are priced out of the market, a workspace or to provide income as a rental property.

If you have been contemplating adding an ADU to your home or finding a home with (or that could have) an ADU, I encourage you to check out my latest resource guide: Accessory Dwelling Units.

If you’re interested in learning more about financing options, I am happy to help you!

Mortgage Rate Update for the week of June 3, 2024

It’s Jobs Week! Check out what’s going on with rates with my latest video.

Mortgage Rate Update for the week of May 27, 2024

I hope you had a great weekend. Here’s what may impact the direction of mortgage rates this week!

If you would like a mortgage interest rate quote with current mortgage rates based on your personal scenario, please contact me!