What May Impact Mortgage Rates this Week: April 28, 2014 – Mortgage Rates are Lower!

This week is jam packed with data that may impact the direction of mortgage interest rates. Mortgage rates are based on bonds (mortgage backed securities) and are traded similar to stocks. Often times, mortgage rates will improve when we see the stock market taking a hit or rise when the stock market is rallying. This is because investors will trade the safety of bonds for the greater returns potentially found with stocks. The reverse is also true.

This week we have the FOMC meeting on Wednesday and the Jobs Report being released on Friday.  It is anticipated that 210,000 non-farm payroll jobs were added in April. You’ll want to be on the look out for signs of inflation and/or the Fed pulling back on their support of keeping mortgage rates at their artificially low rates. Of course, world events may impact the direction mortgage rates, such as the building tensions with Russia.

Here are some of the economic indicators scheduled to be released this week that may cause rates to trend higher or lower:

• Monday, April 28: Pending Home Sales
• Tuesday, April 29: S&P Case-Shiller Home Price Index; Consumer Confidence
• Wednesday, April 30: ADP National Employment Report; Gross Domestic Product (GDP); Employment Cost Index; Chicago PMI; FOMC Meeting
• Thursday, May 1: Personal Consumption Expenditures and Core PCE; Initial Jobless Claims; ISM Index
• Friday, May 2: THE JOBS REPORT

As I write this post, April 28, 2014 at 8:00 am, mortgage rates remain low and are currently lower than the rates I posted last Monday.

Mortgage rates change constantly, sometimes several times a day. By the time I publish or you are reading this post, rates may have already changed by rate or the price (points) for the rate. If you would like me to provide you with a current rate quote based on your personal information for property located in Washington state, please click here.

Rates below are based on a purchase in greater  Seattle/King County with a sales price of $500,000 and a conventional loan amount of $400,000 (20% down payment) with credit scores of 740 or higher, escrow reserve account not waived and closing by June 5, 2014 or sooner. Rates subject to credit approval.

30 year fixed: 4.250% priced with 1.000 point (apr 4.409%) principal and interest payment of $1967.76.  This is an improvement of roughly 0.125% in rate compared to last Monday’s post.

30 year fixed: 4.375% priced with 0.411 points (apr 4.485%) principal and interest payment of $1997.14.  This is an improvement of 0.642% in fee/points compared to last Monday’s post.

30 year fixed: 4.500% priced with -0.265 points/rebate credit (apr 4.575%) principal and interest payment of $2026.74. This is an improvement of 0.395% in fee/points compared to last Monday’s post.

15 year fixed: 3.375% priced with 0.811 points (apr 3.611%) principal and interest payment of $2835.04.  This is an improvement of 0.395% in fee/points compared to last Monday’s post.

15 year fixed: 3.500% priced with 0.146 points (apr 3.640%) principal and interest payment of $2859.53. This is an improvement of 0.286% in fee/points compared to last Monday’s  post.

This is a very small sample of rates, programs and pricing that I have available. If you’re considering buying or refinancing a home located anywhere in Washington state, where I’m licensed, my team and I are happy to help you! Simply click the quote button to the right or start your pre-application today.