What May Impact Mortgage Rates this Week: June 16, 2014

The International Monetary Fund (IMF) has just reduced their forecast for the US GDP from 2.8% to 2.0% due to weaker than expected first half of the year. The bond market seems to be shrugging this off with a much stronger than expected report from the Empire State Index. Mortgage backed securities may also be getting support from increased tensions in the Ukraine. Remember, investors will often seek the safety of bonds over stocks when global issues are causing concerns.

Here’s a look at the economic indicators scheduled to be released this week:

• Monday, June 16: Empire State Index; and Housing Market Index
• Tuesday, June 17: Consumer Price Index (CPI); Housing Starts; and Building Permits
• Wednesday, June 18: FOMC Meeting Statement
• Thursday, June 19: Initial Jobless Claims; and Philadelphia Fed Index

Mortgage rates remain at low levels…I know I sound like a broken record, however, if you have not yet refinanced – it could be a good time to check with your local, licensed mortgage professional. (I’m happy to help you if your home is located anywhere in Washington state).

As  I write this post, (8:00 am this morning), I am quoting:

30 year fixed conventional: 4.125% (apr 4.283%) priced with 1.138 points. NOTE: this is essentially the same as what I quoted on last Monday’s post (0.019% higher in points).

Or if you want to reduce your closing cost, you can lower your rate by an eighth to 4.250% (apr 4.336%) priced with 0.288 points.

Rates quoted above are based on a sales price of $500,000 with 20% down payment and a conventional mortgage with a loan amount of $400,000. Home buyer in Washington state has excellent credit with scores of 740 or higher. Property taxes are included in the mortgage payment and the transaction is closing July 24, 2014 or sooner.

Mortgage rates are subject to credit approval and change constantly. In fact, they may have changed by the time I publish or you are reading this post. This is just a very small example of mortgage rates and I am happy to provide you with your personal rate quote for property located anywhere in Washington state.