Helping Washington State homeowners learn more about their mortgage options.
This morning, mortgage rates are improving largely due to drama that’s taking place in Europe with the IMF and the island of Cypress. The IMF is taxing (some say stealing) from depositors causing a run on the banks.
Remember, mortgage rates are based on mortgage backed securities (bonds). And when investors will seek the safety of bonds over the potential higher return found with stocks, causing mortgage rates to improve.
The strong Jobs Report on Friday caused mortgage rates to trend higher. This morning rates are still at that level. Please keep in mind that although I talk about mortgage rates been higher – they’re still very low. However if you’ve been pricing mortgage rates over the last two months, you’ll notice that the price (discount) for the same rate you’ve been quoted, cost more.
This week’s economic calender would be considered a little on the light side if not for Friday’s Jobs Report. Here are some of the economic indicators scheduled to be released this week.
Tuesday, March 5: ISM Services Index
Wednesday, March 6: ADP National Employment Report and the Beige Book
Thursday, March 7: Initial Jobless Claims and Productivity
Friday, March 8: THE JOBS REPORT
Remember, signs of inflation tend to drive mortgage rates higher. You may also notice that when the stock markets are doing well, mortgage rates tend to rise as investors will trade the safety of bonds (like mortgage backed securities) for the potential greater return of stocks.
Mortgage rates are still very low, however they have been trending higher over the last several weeks.
If I can provide you with a rate quote for a home purchase or refinance located anywhere in Washington state, please click here.
This week is packed with economic indicators that may impact the direction of mortgage interest rates. Mortgage rates have been slowly inching higher since the end of last year. Rates are still very low and you can still get a 30 year in the 3’s – the rate just cost more than it did a month ago.
Here are a few of the economic indicators scheduled to be released this week:
Tuesday, February 26: S&P/Case-Shiller Home Price Index, New Home Sales and Consumer Confidence
Wednesday, February 27: Durable Goods Orders and Pending Home Sales
Thursday, February 28: Initial Jobless Claims, GDP – Gross Domestic Product and Chicago PMI
Friday, March 1: Personal Consumption Expenditures and Core PCE, ISM Index and Consumer Sentiment Index (UoM)
Tomorrow, Fed Chairman Ben Bernanke will be in front of Congress to begin his two day testimony on monetary policy. In addition, $85 billion in automatic budget cuts are set to go into effect on Friday unless Congress takes action.
Remember, mortgage rates are based on mortgage backed securities (bonds) and when stocks are performing, mortgage rates tend to rise. This is because investors will trade the safety of bonds for the possible higher return available from stocks.
The only way to secure today’s mortgage rate is by locking it! You can see examples of “live” mortgage rates I’m quoting by following me on Twitter @mortgageporter or Facebook/WashingtonMortgagePro.
If I can help you with your refinance or home purchase on property located anywhere in Washington state, please contact me.
The stock and bond markets are closed today in observance of President’s Day. Here are a few of the economic indicators scheduled to be released this week.
Wed. February 20: Building Permits; Producer Price Index (PPI); Housing Starts; FOMC Minutes released
Thurs. February 21: Consumer Price Index (CPI); Initial Jobless Claims; Philadelphia Fed Index; Existing Home Sales
Watch for signs of inflation from the PPI or CPI, which tends to drive mortgage rates higher. Wall Street will also be paying close attention to the FOMC minutes.
Happy President’s Day!
Although still very low, mortgage rates have been trending higher. This morning I’m updating a quote for a Seattle home owner who is considering refinancing. The same rate I quoted her a month ago today at “par” (no discount points) will now cost a full discount point or is 0.125 – 0.25% higher in interest rate with similar pricing. I have more on current mortgage rates below.
As the economy improves and the stock market rallies, mortgage rates tend to rise. This is because investors will trade the safety of bonds (like mortgage backed securities) for the potential better return with stocks.
As I write this post (8:10 am) the DOW is down 114 points. Political issues in Europe are giving a boost to mortgage backed securities (bonds) this morning. Remember, when the stock market is getting beat up, traders will seek the safety of bonds.
Here are some of the scheduled economic indicators for this week:
Tuesday, February 5: ISM Services Index
Thursday, February 7: Initial Jobless Claims and Productivity
Did you watch Superbowl XLVIII? Did you know that in 34 minutes the lights were out, you could have taken the first steps to either reduce your mortgage rate or start the preapproval process to buy a home? It takes about a half hour to fill out the on-line loan application that I have available on line at Mortgage Porter. My commercial’s over!
Seriously, if I can help you with your mortgage needs on a home located anywhere in Washington, please contact me. I have been helping with refinances and purchase mortgages at Mortgage Master Service Corporation since April 2000.
Mortgage backed securities are in the red this morning. Although rates are still very low, those who have not locked in their mortgage rates may be surprised to see the rate or cost for the rate is now higher. As the economy continues to show signs of improvement, investors will trade the safety of bonds (like mortgage backed securities) for stocks.
As of 8:30 am this morning, 3.625% is priced near “par” (with as little rebate credit or discount points) for a 30 year fixed rate-term refinance (apr 3.690). As you can see, mortgage rates are still very low however, they have been slowly trending higher. Rates change constantly and there are at least 10 factors that impact the pricing of mortgage rates. For your personal mortgage rate quote for your refi or home purchase anywhere in Washington state, click here.
This week is loaded with the FOMC rate decision on Wednesday and Friday’s Jobs Report. Here are some of the scheduled economic indicators and events that may impact mortgage rates this week.
Monday, January 28: Durable Goods Orders and Pending Home Sales
Tuesday, January 29: S&P Case Shiller Home Price Index and Consumer Confidence
Wednesday, January 30: GDP Chain Deflator, ADP National Employment Report, Gross Domestic Product (GDP) and FOMC Meeting
Thursday, January 31: Employment Cost Index (ECI), Personal Consumption Expenditures (PCE), Initial Jobless Claims and Chicago PMI
Friday, February 1: THE JOBS REPORT, ISM Services Index and Consumer Sentiment (UoM)
You can follow me on Twitter for live mortgage rate quotes at @mortgageporter and/or “like me” on Facebook.
If your home is located anywhere in Washington state, where I’m licensed to originate, I’m happy to help you with your mortgage.
Rhonda Porter is a Licensed Mortgage Originator MLO121324 living in the greater Seattle area. Rhonda began her career in 1986 in the title and escrow industry and began her mortgage career in 2000. She enjoys helping people understand the mortgage process and started writing The Mortgage Porter in late 2006. Read More…
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