This Week’s Recap
July brought some encouraging inflation news. Consumer prices rose just 0.1% for the month, with annual inflation slowing to 3.4%. Core inflation — which strips out food and energy — dropped to 2.5% year over year, its lowest rate in more than five years. That’s a welcome sign for the Fed as it weighs its next move, especially with July’s jobs report showing job losses for the first time in months.
On housing, existing home sales declined for a second month in a row, though prices continue to show seasonal strength — Cotality’s latest data has prices up 0.3% for the month and 1.2% year over year, a reminder that home values keep trending upward even in a slower sales environment.
Closer to home, our local market is telling a similar story. The Northwest MLS reports King County’s median sales price at $879,500 in July — up just half a percent from a year ago, essentially flat. What’s really shifted is inventory: active listings across our region are up nearly 20% year over year, giving buyers noticeably more room to shop and negotiate than they’ve had in a while.
And in the broader economy: retail sales fell 0.6% in July, below expectations, while unemployment claims held relatively low at 209,000.
Mortgage Rates This Week
Optimal Blue’s index puts the average 30-year fixed rate at 6.647% as of last Friday, August 14th — a touch higher than what I shared with you last week, and very close to where rates stood this time last year. Rates dipped just below 6% right before the conflict in Iran began, and have been elevated since.
A quick reminder: the Optimal Blue index reflects about 35% of mortgage transactions nationwide — it’s not a rate quote. You can’t lock in last week’s rate today, and your credit score, loan-to-value, and other factors will all affect what you personally qualify for. This is simply meant to give you a sense of where rates are trending.
I’m happy to provide you with current mortgage rates based on your personal financial scenario for your home purchase or refinance in Washington state.
Economic Calendar
It’s a pretty light week on the calendar. The big item is Wednesday’s release of the FOMC minutes. Beyond that, keep an eye on oil prices and the war in Iran — that’s likely to be what drives rate movement this week.
Mortgage-Backed Securities Snapshot
As of this recording (just after 10am), mortgage-backed securities are slightly down — pretty flat overall. The Dow was down about 215 points.
Reverse Mortgage Myth of the Week
Today I want to bust a common myth about reverse mortgages: the belief that the bank takes over or owns your home. That’s simply not true. There are strict loan-to-value requirements upfront that factor in the homeowner’s age and the home’s value.
A HECM loan is a non-recourse mortgage, meaning neither you nor your heirs will ever owe more than the home is worth — even if the home’s value drops. And once you no longer occupy the home, you or your heirs have options: refinance out of the reverse mortgage or sell the home and keep the net proceeds.
For seniors sitting on significant home equity, whether you’re facing a financial challenge in retirement or just want to supplement your cash flow, a reverse mortgage is worth considering. And if it’s not the right fit, we have several other mortgage options to help seniors as well.
Let’s Talk About Your Mortgage
If you have questions about your specific scenario — whether you’re buying, refinancing, or exploring a reverse mortgage — I’d love to hear from you.
Rhonda Porter is a licensed Mortgage Advisor (NMLS #121324) serving King, Pierce, and Snohomish Counties in Washington State.
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