Mortgage Update for the Week of December 12, 2010

iStock-000020911287XSmallMortgage rates continue to be very low levels. Freddie Mac has been reporting average interest rates for 30 year at under 4% for the last year with 15 year fixed rates being under 3% for the last six months.

While the Fed works at keeping rates at artificially low levels, Congress is considering increasing the guarantee fees to new conventional mortgages to help fund programs that have nothing to do with Fannie Mae, Freddie Mac or even the housing recovery. The guarantee fees (aka g-fees) are factored into the pricing of a mortgage rate. FHA mortgage loans are also becoming more expensive in 2013 with the increase of mortgage insurance premiums.

Here are a some of the scheduled economic indicators scheduled to be released this week:

Wednesday, December 12: FOMC Meeting

Thursday, December 13: Producer Price Index (PPI); Initial Jobless Claims; Retail Sales

Friday, December 14: Consumer Price Index (CPI)

Wednesday, we’ll hear from the Fed after they wrap up their two day meeting. All ears will be waiting for hints on if the Fed will bring us QE4. Stay tuned!

PS: I am happy to provide you with a detailed written rate quote for your Washington home.

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