Typically 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.
Why is the Jobs Report so important to mortgage rates?
May 3, 2013 by 1 Comment
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.
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!
What may impact mortgage rates the week of April 29, 2013
April 29, 2013 by Leave a Comment
This week is jam packed with economic data that may move mortgage rates, including the Fed meeting wrapping up on Wednesday and Friday’s Jobs Report.
This morning’s PCE came in with inflation continuing to be tame (good news for bonds, like mortgage backed securities). And more good news for housing, Pending Home Sales for March came in much stronger than expected.
Here are some of the economic indicators scheduled to be released this week:
Monday, April 29: Personal Consumption Expenditures and Core PCE; Pending Home Sales
Tuesday, April 30: Employment Cost Index (ECI); S&P/Case-Shiller Home Price Index; Chicago PMI; Consumer Confidence
Wednesday, May 1: ADP National Employment Report; ISM Index; FOMC Meeting
Thursday, May 2: Productivity and Initial Jobless Claims
Friday: The Jobs Report; ISM Services Index
As I get ready to publish this post (9:30 am) the DOW is up 94 points at 14,806 and mortgage backed securities are up 12 bps (FNMA 30 year 3.0%).
If you want to keep current with the results from the economic indicators for the rest of this week, you can follow me on Twitter @mortgageporter or Facebook.
Of course if you are considering buying or refinancing a home located in Everett, Edmonds, Enumclaw or anywhere in Washington state, where I’m licensed, I’m happy to help you – click here for a mortgage rate quote.
What May Impact Mortgage Rates the week of April 22, 2013
April 22, 2013 by Leave a Comment
Mortgage rates continue to be very low, helping to spur on greater Seattle area home buyers and home owners wanting to refinance. If you’ve been considering locking in a low mortgage interest rate, now could be a good time to do so!
Here are some of the economic indicators scheduled to be released this week that may impact mortgage interest rates.
- Monday, April 22: Existing Home Sales
- Tuesday, April 23: New Home Sales
- Wednesday, April 24: Durable Goods Orders
- Thursday, April 25: Initial Jobless Claims
- Friday, April 26: Gross Domestic Product (GDP) and Consumer Sentiment Index (UoM)
Don’t forget, we have just over one month left to get FHA case numbers in order to avoid having FHA mortgage insurance on the life of the loan. This will impact FHA case numbers issued June 3, 2013 and later. FHA case numbers are typically issued after full application.
If you are considering buying or refinancing a home in Sammamish, Sumner, Sultan or anywhere in Washington State, where I’m licensed to be a Loan Officer, please contact me I’m happy to help you!
You can also follow me on Twitter @mortgageporter or “like me” on Facebook.
What may impact mortgage rates the week of April 15, 2013
April 15, 2013 by Leave a Comment
Here are some of the economic indicators scheduled to be released this week which may impact mortgage rates:
Monday, April 15: Empire State Index
Tuesday, April 16: Building Permits; Consumer Price Index (CPI); Housing Starts; Industrial Production and Capacity Utilization
Wednesday, April 17: Fed’s Beige Book
Thursday, April 18: Initial Jobless Claims and Philadelphia Fed Index
Remember, mortgage rates are based on mortgage backed securities. When the stock market is deteriorating, mortgage rates tend to improve (or not decline) as investors will seek the safety of bonds over the quicker profits potentially found in stocks. And when the stock market is rallying, mortgage rates tend to trend higher as investors seek a higher return from stocks.
What also impacts mortgage rates is the Fed’s buying of mortgage backed securities to keep rates lower while unemployment is higher. By keeping mortgage rates low, the housing market has improved by making mortgages more affordable (and tempting with extremely low rates) to buy homes and also by helping Americans reduce their mortgage payments by hundreds of dollars each month, which puts more cash back into the economy.
Speaking of refi’s, last week, HARP 2.0 was extended through 2015.
Another important date to remember is May 31, 2013. If you’re considering an FHA refinance or streamline refi or are in the process of buying a home using FHA financing, you’ll want to start soon. FHA case numbers issued June 3 or later will have mortgage insurance for the life of the FHA loan (until it is refinanced or paid off).
If you are interested in buying or refinancing a home located in Bellingham, Bainbridge Island, Bellevue or anywhere in Washington state, I’m happy to help you. Click here for a mortgage rate quote.
Mortgage rate update for the week of April 8, 2013
April 8, 2013 by Leave a Comment
Mortgage rates continue to remain at historically low levels. Homeowners who have not recently refinanced may want to contact their mortgage professional to see if they can reduce how much they’re paying on interest.
Something that’s not staying low in the Seattle/King County area is home prices. The Seattle Times reports that in March, home prices are up 20% year over year. The median price for a home sold last month in Seattle jumped to $462,375. This is largely due to a lack of inventory. If you’ve been considering selling your home, now may be a good time.
Here are some of the economic indicators scheduled to be released this week:
Wednesday, April 10: FOMC Minutes
Thursday, April 11: Initial Jobless Claims
Friday, April 12: Retail Sales; Producer Price Index (PPI); Consumer Sentiment Index (UoM)
Also important to note: there has been some confusion as to the recent changes to mortgage insurance premiums on FHA loans regarding when the coverage terminates. FHA mortgage insurance will not become permanent until June 2013 and impacts newly originated FHA loans only with case numbers issued after May 31, 2013.
If I can help you with your home purchase or refinance for your home located anywhere in Washington state, please contact me. Have a great week!
Mortgage update for the week of April 1, 2013
April 1, 2013 by Leave a Comment
Happy April Fools Day! 13 years ago today, I began my mortgage career at Mortgage Master Service Corporation…time flies when you’re having fun! April Fools is also the day I married my husband, Rob, seven years ago. Neither of these events impact mortgage interest rates – here are some scheduled economic indicators for this week that may:
Monday, April 1: ISM Index
Wednesday, April 3: ADP National Employment Report and ISM Services Index
Thursday, April 4: Initial Jobless Claims
Friday, April 5: THE JOBS REPORT
We’ll see on Friday if the unemployment rate continues to trend lower. Remember, positive data or signs of inflation tends to drive mortgage rates higher as investors will trade the safety of bonds (like mortgage backed securities) for the potential higher return of stocks. The reverse is also true.
Mortgage rates are still very low. You can see what rates I’m quoting as well as tid-bits about mortgages if you follow me on Twitter or Facebook. If you would like me to provide you with a mortgage rate quote for your purchase or refi on a home located anywhere in Washington state, click here.
Rhonda and Rob Porter
Mortgage Rate update for the week of March 25, 2013
March 25, 2013 by Leave a Comment
There are no economic indicators scheduled to be released today. What is impacting the direction of mortgage rates this morning is the small European country of Cypress. Banks are re-opening tomorrow and it’s widely expected that there will be a run on the Cypress savings accounts because of the tax that is being imposed on the citizens. The markets fear that this may spread to other countries in Europe.
Here are a few of the economic indicators scheduled for this week:
- Tuesday, March 26: Durable Goods Orders; S&P Case-Shiller Home Price Index; Consumer Confidence; New Home Sales
- Wednesday, March 27: Pending Home Sales
- Thursday, March 28: Initial Jobless Claims; Gross Domestic Product (GDP); Chicago PMI
- Friday, March 29: Personal Income and Personal Consumption Expenditures (PCE); Consumer Sentiment Index (UoM)
The bond market will close early on Thursday to begin the holiday weekend.
As I write this post (7:40 am 3/25/23) the DOW is down 16 at 14495. MBS (mortgage backed securities) is sligh up 3 bps.
This is also your last week to get a new FHA loan with current reduced mortgage insurance premiums. Effective with new FHA case numbers issued April 1, 2013 or later, FHA annual mortgage insurance premiums are going up. If you have an FHA loan that is in process with a mortgage company, contact your mortgage originator and make sure they have your case number.
If you are considering buying or refinancing a home located anywhere in Washington, I’m happy to help you! Click here if you would like me to provide you with a mortgage rate quote based on your personal scenario.
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