What May Impact Mortgage Rates this Week: February 1, 2016

MortgagePorter-JobsReportWelcome to February! As it’s the first week of a month, we have the Jobs Report due to be released this Friday. Mortgage rates are at their lowest levels in months. Many Washington home owners are taking advantage and refinancing to either reduce their payment, shorten their mortgage terms or taking cash out for home improvements or to consolidate debt. We are also seeing more home buyers in action too!

Although mortgage rates low, they have been very volatile. The Jobs Report and other data that is released this week tends to add to rates bouncing as well. Mortgage rates have also been reacting to volatility in the stock market and oil. Remember, mortgage rates are based on bonds (mortgage backed securities) and when the market is turbulent, investors may seek the safety in bonds, like mortgage backed securities.

If you are considering refinancing or are in position to lock in your mortgage rate, you may want to discuss the Jobs Report with your mortgage professional. If you are buying or refinancing a home located anywhere in Washington state, where I am licensed, I am happy to help you! Click here for a no-hassle mortgage rate quote.

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

  • Monday, February 1: Personal Consumption Expenditures (PCE); ISM Index
  • Wednesday, February 3: ADP National Employment Report; ISM Services Index
  • Thursday, February 4: Initial Jobless Claims; Productivity
  • Friday, February 5: THE JOBS REPORT

Back to the Jobs Report… it is anticipate that 188,000 new jobs will be reported for  January on Friday. Mortgage rates tend to react to the Jobs Report data as it not only reflects the health of our economy, it also an indicator of inflation. Inflationary data (such as higher wages), may cause mortgage rates to move higher.

Just how low are mortgage rates?  Markets are closed at this moment (I’m up extra early to write this post), however as of closing last night, rates for a 30 year fixed were:

  • 3.625% priced with 0.957 points (apr 3.762%)
  • 3.750% priced with 0.186 points (apr 3.825%)

This is an improvement of about 0.125% in rate or 0.518 in fees/points since my rate post a few days ago on Thursday.

Rate quoted above is based on a purchase in the greater Seattle – King County area with a sales price of $500,000, 20% down payment and a conventional loan amount of $400,000. The home buyers have excellent credit with credit scores of 740 or higher and the transaction is closing by March 11, 2016 or sooner.  A larger down payment or more equity in the home for a refi may provide even better pricing…just as lower credit scores may impact pricing for the worse (depending on the amount of equity). Mortgage rates are priced based on layers of risk so it’s important to get your personal rate quote and not rely on what’s published on the web or broadcasted on the radio.

Rates quoted are subject to credit approval and may change at any time. Payments quoted above do not include property taxes or insurance and are principal and interest only. 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.

 

 

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