It’s Fed Day! [Live Post] No Change to the Fed Funds Rate!

Good morning! It’s just before 7:00 am PST as I’m writing this post. In a couple of hours, we’ll hear the announcement from the FOMC wrapping up their two day meeting on measures they will take to get inflation in line, which includes adjustments to the Fed Funds rate. The Fed Funds rate does not directly impact mortgage interest rates (except for HELOCs attached to the Prime rate), however the action the Fed takes does influence the direction of mortgage interest rates. Mortgage interest rates are based on bonds (mortgage-backed securities or MBS) and react similarly to stocks. Inflation is the “arch enemy” of bonds, which is a big part of why mortgage rates have been higher these past few years. Should the Fed indicate that inflation is taming and investors believe what the Fed is saying, we should see mortgage rates improve…and of course, the opposite is true.

Debts that have interest rates based on the Prime rate, like HELOCs and credit cards, are impacted by what direction the Fed takes with the Fed Funds rate because the Prime rate is based on the Fed Funds rate. This is why HELOC interest rates are higher and credit card interest rates are ridiculously high.

As I’m writing this post, MBS pricing (mortgage backed securities) are improved by roughly 26 bps. This does not always translate to an improvement in rates sheets or pricing to us consumers…but it’s the trend that is needed for mortgage rates to improve.

Stay tuned! I will be updating this post throughout the day.

11:30 am PST: MBS are now down 16 bps. Fed Chair Powell announces no changes to the Fed Funds rate. This was widely inspected by investors. Now let’s see what Fed Chair Powell has to say regarding inflation….

2:00 pm: MBS are down 39 bps after the Fed indicates they intend to keep rates higher for longer with the possibility of a future rate increase.

You can see in the graphic below how mortgage-backed securities (which mortgage rates are based on) moved throughout the day. The lower the blue area, the higher the rate (or pricing for the rate) is.

A Modern Mortgage: The All In One Loan


You’ve probably figured out by now that I’m a pretty big fan of the All In One Loan. I encourage you check out the simulator so that you can see how differently this mortgage works. The simulator shows a side by side comparison of a traditional 30 year mortgage to the All In One Loan that I think you’ll find interesting. [Read more…]

Homebuyer Class in Tacoma

Update: Thanks to all our students! It was wonderful teaching you about the home buying process and I look forward to teaching another class again soon! 
[Read more…]

Resource Guide on the All In One Loan


I recently put together a new resource guide on the All in One Loan. The more I learn about this program, the more I appreciate this mortgage. I think it is probably the best mortgage available for most people if they qualify for it. [Read more…]

Why It Makes Sense to Buy Before Mortgage Rates Move Lower

Seattle area Real Estate Broker, Kim Mulligan, posted this on Facebook a couple of days ago regarding a recent listing:

“For those of you that were clamoring to be my neighbor, I have bad news. A pricing war ensued and an offer was chosen last night. Ends up we had well over 80 parties tour the home in two days, several offers came forth, and a lucky buyer will get to share a fenceline with me. Why do I mention this? Many people think that there isn’t a market right now because of interest rates. Yes, buyers are careful and shy. The truth is some people have to move in any market. Sellers don’t need to be afraid to list their homes. Yes, buyers are choosey, but priced and presented well, and with the right lender where you can change your interest rate when it drops down again, your home could sell within 3 days as well![Read more…]

Tumwater Homebuyer Class


Please join me and DeAnna Franklin from Franklin Home Team for our home buyer “lunch and learn” in Tumwater. We will be covering all you need to know about buying a home in today’s market in 2 hours over lunch including: [Read more…]

Looking for Affordable Housing? Check out Greater Tacoma!

If you’re looking to buy your first home, you may have to expand your horizon to find a home that’s more affordable. When I bought my first home many years ago, I wound up with a small rambler in Northeast Tacoma. We used an FHA mortgage with a 3.5% down payment (you do NOT need 20% down to buy a home). At the time, I was working in downtown Seattle at the Columbia Center and it was a heck of a commute…but I was so proud to own a home. We only owned it for a couple of years before we were able to sell it and use the appreciation to buy our next “move up” home. [Read more…]

NEW Down Payment Assistance Program

We have added a new down payment assistance program where eligible home buyers can receive up to 100% financing. This program is not limited to first time home buyers and there are no income limits with an FHA mortgage as the first lien. Would you like more good news? The down payment assistance is in the form of a second mortgage with a 5-year forgivable option OR a 10-year repayable option.

Here’s more: [Read more…]