Fed Leaves Rates the Same BUT…

The Fed’s announcement today to leave the funds rate unchanged was not a surprise to the markets. What did send the bond market in a tizzy this afternoon was that the Fed ever-so-slightly moved the goal posts out a bit for inflation.

Inflation deteriorates bonds and mortgage rates are based on mortgage backed securities (MBS). The chart to the left shows the movement in mortgage backed securities just TODAY. You can see when the Fed released their statement at 11:00 am PST how bonds dropped and then tried to absorb the data just to plummet at the end of day dropping 84 basis points. When bond prices drop, mortgage rates trend higher.

Mortgage rates have been beyond Goldilocks low… they have been extraordinarily low for a long time. If signs of inflation continue, which includes higher wages (or wage inflation), we will see mortgage rates trend higher.

Bottom line, please don’t delay your refinance and if you’re buying a home, keep in mind that rates going up will mean the same payment will buy you a lesser priced home.

If you are considering buying or refinancing your home, second home or investment property located anywhere in Washington state, I’m happy to help you!

Reduce your mortgage payment AND improve your your home with a refi

Recently I helped some clients refinance their mortgage on their home in Tacoma. Not only did we dramatically reduce their monthly mortgage mortgage payment, they were able to make some improvements to their home.

“with the money from the refinance, we have done a complete kitchen remodel, new furnace and central A/C, new back deck and stairs, a new roof in about a month, new garage door install, plus we should have enough for exterior paint and maybe replace the gas fireplace…Thank you for all your help!

I am happy that my clients have a more comfortable mortgage payment and  home for when they eventually retire…heck, they’ll be enjoying the air conditioning this summer!

With all the time we’re spending in our homes these days, why not take advantage of historically low mortgage rates and spruce up your home?

Freddie Mac released the weekly prime mortgage market survey (PMMS) today showing rates trending lower last week with rates reported back under 3%.

If you’re considering restructuring your mortgage or debts or making home improvements, I am happy to review your current mortgage to see if refinancing your Washington state home makes sense for your personal scenario.

PS: I also love to help people with the financing of their Washington state home purchases.

Mortgage Rates Move Lower

Freddie Mac released the Prime Mortgage Market Survey this morning showing mortgage interest rates have been trending lower.

[Read more…]

The Mortgage Junk Mail Bag

It’s been a while since I’ve written about mortgage junk mail. Today I have been presented the opportunity as a client I helped with their mortgage a few years ago reached out to me regarding some mail they recently received that appeared to have possibly come from our company, Mortgage Master.

The P.O. J. (piece of junk) appears to know a lot of information about the home owner – this is because your mortgage and original loan amount are public record.  This type of marketing also tends to offer lower than available interest rates and things like “no payments for two months”…perhaps it features an offer code or a limited time offer. [Read more…]

Home Buyer Classes for Washington State

If you are brand new or a little rusty at buying a home, there are some excellent options that are available for you. Some classes feature unique benefits for the students. Before taking one of the courses below, I suggest you reach out to a local, licensed Loan Officer to see if one class may be better suited for your home buying goals.

Here are a few online home buying classes you may want to consider: [Read more…]

Mortgage Rates trending higher

It feels kind of funny to write about mortgage rates trending higher when they’re still in the three percent range…which historically, is an extremely low interest rate. However, we have all become accustomed to the pandemic-era rates below 3%. Check out how much rates have moved since February for the 30 year fixed (blue line) as illustrated with the PMMS report released today. EDITORS NOTE: Rates posted below are EXPIRED! Please click here for current mortgage rates.

A year ago, at this time, the PMMS reported the 30 year fixed rate averaged at 3.65%. A rate that is still far below what is a historically “normal” mortgage rate. [Read more…]

Big Expensive Changes for Second Homes and Investment Properties

Last night, Fannie Mae announced they are essentially going to be limiting how many second homes and investment properties they will provide mortgages for. This is largely due to the additional risk associated with second homes and investment properties. This goes into effect with loans delivered to Fannie Mae on April 1, 2021 – which pretty much means “immediately” as mortgage loans are delivered to Fannie Mae (or Freddie Mac) after they close…sometimes weeks after they close with the originating mortgage company. [Read more…]

Mortgage Rates Jump on Good News and Inflation

Mortgage rates jumped roughly 0.25% today in rate (or about 1% in discount points) today because of strong economic data and possibly signs of inflation.  Costco announced it will be raising their minimum pay to $16 per hour – which is great news for Costco employees – however, it’s wage inflation (which we will probably see more of). When wages go up, the cost of goods will follow. Inflation drives mortgage rates higher because of the impact to bonds, like mortgage backed securities. [Read more…]