What may impact mortgage rates this week: June 10, 2013

June 10, 2013 by Leave a Comment

Mortgage rates have been moving higher over the past few weeks. The better than expected data from last Friday’s Jobs Report helped that trend.

There’s not a lot of scheduled economic indicators on calendar for this week so you can expect rates to be impacted by the stock market. If the stock market does well, mortgage rates may move higher. Why? Mortgage rates are based on mortgage backed securities (bonds) and investors will trade the safety of bonds for the potentially better return found with stocks.

Here’s how this week is looking with economic indicators:

  • Thursday, June 13th: Retail Sales and Initial Jobless Claims
  • Friday, June 14th: Producer Price Index (PPI) and Consumer Sentiment (UoM)

This morning, Standard and Poor’s revised the United States credit rating from negative to stable. Remember “good news” tends to cause mortgage rates to deteriorate.

The Treasury will be selling $66B in notes and bonds this week starting tomorrow.

Even though rates are higher than they were last month, they are still very low. If you’re interested in locking in what is still considered a historically low rate on a home located anywhere in Washington state, please contact me.

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What may impact mortgage rates this week: June 3, 2013

June 3, 2013 by Leave a Comment

Mortgage rates have been trending higher, catching some home buyers and home owners waiting for a much lower rate off guard. Will that trend continue? We have the Jobs Report being released this Friday and if it comes in significantly weaker than expected, we may see rates improve. Historically speaking, mortgage rates are still very low…however, those who are set on the artificially sweet rates we’ve been experiencing, may be disappointed.  You may be interested the graph in MMG Weekly ilustrating how rough May was on mortgage rates.

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

  • Mon., June 3: ISM Index
  • Wed., June 5: ADP National Jobs Report; Productivity; ISM Service Index; and the Fed’s Beige Book
  • Thur., June 6: Initial Jobless Claims
  • Fri., June 7: The Jobs Report

The Jobs Report is the “big daddy” this week with expectations of employers adding 159k new jobs last month. If the jobs report reveals robust employment and figures better than anticipated, we may see rates spike higher. If the report surprises with weaker employment data and less jobs added than expected, we could see an improvement in rates.

As I write this post (June 3, 2013 at 8:50 am) mortgage rates are improving a bit from earlier this morning due to ISM Index coming in worse than expected.  Mortgage rates change constantly. If you are interested in a mortgage rate quote based on your scenario and *current* rates, please click here. NOTE: I can only provide rates for homes located in Washington state, where I am licensed to originate mortgages.

30 year fixed:  3.875% (apr 4.046) priced with 1.232 discount points with closing cost (including points) of $8488. Principal and interest payment = $1,880.05

30 year fixed:  4.000% (apr 4.121) priced with 0.616 discount points bringing estimated closing cost to $6,024 with a principal and interest payment of $1,909.66

15 year fixed: 3.125% (apr 3.332) priced with 0.630 discount points bringing estimated closing cost to $6,080 with a principal and interest payment of $2,786.44.

Rates quoted above are based on a 740 or higher mid-credit score with a loan amount of $400,000 and a sales price of $500,000 for an 80% loan to value for a purchase in Seattle closing by July 11, 2013 using conventional financing.

If you are a pre-approved home buyer, you may want to contact your mortgage professional to make sure the rise in mortgage rates has not impacted your approval status. Especially if your approval letter was prepared over a week ago or your pushing your qualifying limits with higher debt to income ratios.

If I can help you with your refinance or purchase with your home located anywhere in Washington state, please contact me.

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What May Impact Mortgage Rates the Week of May 27, 2013

May 28, 2013 by

We are back to work following the Memorial Day holiday and mortgage rates are trending higher this morning. Mortgage interest rates are still at historically low levels, however they are off their extreme lows.

Yesterday, markets were closed in observance of Memorial Day. Here are some of the scheduled economic indicators that may impact mortgage rates this week:

  • Monday, May 27: Memorial Day
  • Tuesday, May 28: S&P/Case Shiller Home Price Index and Consumer Confidence
  • Thursday, May 30: Initial Jobless Claims, Gross Domestic Product (GDP), GDP Chain Deflator and Pending Home Sales
  • Friday, May 31: Personal Consumption Expenditures (PCE), Personal Income, Personal Spending, Chicago PMI and Consumer Sentiment (UoM)

This morning, the S&P/Case-Shiller Home Price Index for March revealed that year over year, home prices went up 10.9% based on the 20 City Composite. This is the largest increase to home prices since 2006. Seattle’s home prices, according to this report, were up 10.6% year over year.

As I write this post (6:52 am), the DOW is up 171 points and, as I mentioned earlier, mortgage backed securities (bonds) are getting beat up. Remember, investors will trade the safety of bonds for the potentially quicker return found with stocks. As the stock market continues to rally, you can anticipate mortgage rates to continue to trend higher.

You can still have a 30 year fixed rate in the “3’s” as of this morning…you’ll just have to pay more for it.  As of 7:00 am, I’m quoting:

3.875% priced with 0.719% in discount points based on a loan amount of $400,000 with a sales price of $500,000 (80% loan to value) and 740+credit scores (apr 4.005%). Based on a 30 year fixed rate for a purchase in greater Seattle closing July 5, 2013 or sooner.

DON’T FORGET: this is your last week to start an FHA loan and still have mortgage insurance that will terminate. FHA case numbers issued after this will have mortgage insurance on the life of the loan.

If you would like me to provide you with a mortgage rate quote for your home located anywhere in Washington state, where I’m licensed, click here.

 

 

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What May Impact Mortgage Rates this Week: May 20, 2013

May 20, 2013 by

There was no economic data released today or scheduled for Tuesday.

On Wednesday, we’ll have the minutes from the last Fed meeting which may cause rates to move based on the clues found in the minutes and how bond traders interpret them. 

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

Wednesday, May 22: Existing Home Sales; FOMC Minutes

Thursday, May 23: Initial Jobless Claims; New Home Sales

Friday, May 24: Durable Goods Orders

Don’t forget, Monday, May 27, 2013 is Memorial Day and most offices will be closed.

Mortgage rates are still historically very low… however over the past couple weeks, they have been trending higher.

Today I quoted 3.750% (apr 3.828) for a 30 year fixed rate priced at “par” (0.141% in discount points – no origination points) based on a sales price of $500,000 with a 20% down payment and credit scores of 740 or higher. The principal and interest payment for this Seattle area home buyer is $1,852.46.

If you would like me to provide you with a mortgage rate quote for a home located anywhere in Washington state, click here.

Filed Under: Economy

What May Impact Mortgage Rates this Week: May 13, 2013

May 13, 2013 by Leave a Comment

Mortgage rates, although still very low, are trending higher this morning following stronger than expected Retail Sales data and concerns over the Fed ceasing QE3 sooner than expected. In addition, the stock markets have been reaching new highs which typically translates to higher mortgage rates as investors trade the safety of bonds (like mortgage backed securities) for the potentially higher return found in stocks. Currently mortgage rates are about 0.125% higher in rate than where they were on Friday evening.

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

Monday, May 13: Retail Sales

Wednesday, May 15: Producer Price Index (PPI) and Empire State Index

Thursday, May 16: Consumer Price Index (CPI); Housing Starts; Initial Jobless Claims; Building Permits; and Philadelphia Fed Index

Friday, May 17: Consumer Sentiment (UoM)

When QE3 ends and the Fed discontinues their bond buying program which has been keeping mortgage rates artificially low, we will see mortgage rates trend higher. It’s estimated that rates will be closer to what non-conforming/jumbo rates currently are.

If you’re interested in a rate quote for your home located in Burien, Bothell, Bellingham or anywhere in Washington state, where I’m licensed, click here.

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Mortgage Rate Update for the Week of May 6, 2013

May 6, 2013 by Leave a Comment

This week’s calendar is looking a little light as far as scheduled economic indicators which may influence the direction of mortgage interest rates. 

Thursday, May 9: Initial Jobless Claims

Wow…. that was exciting! 🙂

On Tuesday, the Treasury will begin to sell $27 billion in notes and bonds which may impact mortgage rates as they are based on mortgage backed securities (bonds).

Remember, you can follow me on Twitter @mortgageporter or on Facebook to trending information about mortgages. Of course you can always subscribe to my blog too. You can unsubscribe at any time.

If you are interested in refinancing or buying a home (primary, second home or investment property) in LaConner, Langley, Lynnwood or anywhere in Washington state, where I’m licensed, I’m happy to help you. Click here for a mortgage rate quote.

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Why is the Jobs Report so important to mortgage rates?

May 3, 2013 by 1 Comment

MortgagePorter-JobsReportTypically on the first Friday of every month, the Bureau of Labor Statistics releases the Employment Situation Summary, otherwise known as The Jobs Report. This report details specific employment trends, including how many Americans are employed with “non-farm” jobs, trends in various fields of employment, income and hours worked. It also includes the “official” unemployment rate. The data contained in the Jobs Report carries a lot of weight and is considered one of  our country’s stronger economic indicators.

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S&P Case-Shiller reports homes prices up in Seattle

April 30, 2013 by Leave a Comment

The  S&P/Case-Shiller Home Price Index was released this morning showing that home prices across the country are up 9.3% year over year through February based on the 20-City Composite. All 20 cities in the composite have reported increases in home prices over the last two months.

Some cites are experiencing double digit increases. Seattle’s home prices are up 9.3% year over year per this report.

SP Case Shiller Apr30
 

From the report:

“Home prices continue to show solid increases across all 20 cities,” says David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices. “The 10- and 20-City Composites recorded their highest annual growth rates since May 2006; seasonally adjusted monthly data show all 20 cities saw higher prices for two months in a row – the last time that happened was in early 2005….”

If you are considering buying a home in Seattle or anywhere in Washington state, I strongly recommend that you meet with a licensed mortgage originator and start the preapproval process early. I’ll often meet with home buyer six months to a year before they’re planning on buying a home. If I can help you, please let me know!

Filed Under: Economy, Residential Purchase Tagged With: , ,
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