What May Impact Mortgage Rates this week: December 1, 2014 – Mortgage Rates continue Lower

Can you believe this is the last month of 2014? This year really seems to have gone by extra fast to me…or perhaps I’m just getting older or perhaps I’m feeling this way after returning to work following the long holiday weekend. 🙂

Regardless of how quickly time flies, this week is packed with economic data that may impact the direction of mortgage rates, including the Jobs Report on Friday.

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

Monday, December 1: ISM Index

Wednesday, December 3: ADP National Employment Report; Productivity; ISM Services; Fed’s Beige Book

Thursday, December 4: Initial Jobless Claims

Friday, December 5: The Jobs Report

The Jobs Report carries a lot of weight as it may indicate wage inflation and inflation will drive mortgage rates higher as inflation is detrimental to bonds (like mortgage backed securities). The Jobs Report also reflects the health of our economy with a view of our current workforce. If wages and work hours are increasing (good news right?) it could be wage inflation, causing employers to have to pay more for the same labor and, of course, the additional cost is most often passed onto the consumer. Watch for this report to be released Friday morning.

Mortgage rates are currently improved compared to last Monday’s rate post. If your new year resolution is to save money, now may be a good time to lock in a refi rate! As I write this post, December 1, 2014 at 8:30 am, I’m quoting:

30 year fixed: 3.750% (apr 3.879%) priced with 1.001 points with  a principal and interest (p&i) payment (taxes and insurance not included) of $1,852.

30 year fixed: 3.875% (apr 3.952%) priced with 0.372 points with p&i of $1,881.

20 year fixed: 3.625% (apr 3.780%) priced with 0.799 points with p&i of $2,372.

15 year fixed: 3.125% (apr 3.286%) priced with 0.574 points with p&i of $2,786.

Rates quoted above are based on a purchase in the greater Seattle – King County area with a sales price of $500,000, 20% down payment and a loan amount of $400,000. The home buyers have excellent credit with credit scores of 740 or higher and the transaction is closing by January 8, 2015 or sooner.

Rates quoted are subject to credit approval and may change at any time. This is just a small sample of the mortgage rates and programs that I have available. If you would like me to provide you with a mortgage rate quote for your home purchase or refinance on your home located anywhere in Washington state, please click here.