Mortgage Update for the week of January 21, 2013

January 21, 2013 by Leave a Comment

It’s another short week with the Martin Luther King Holiday observed today.

President Obama is also being sworn in for his second term. Many home owners are hopeful that President Obama is successful in getting HARP 3.0 and the “Obama Refi” aka #MyRefi programs that he pushed for in his first term, approved and available for those who need to refinance and do not qualify for HARP 2.0 or streamlined refinances, such as FHA, VA or USDA.

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

Tuesday, January 22: Existing Home Sales

Thursday, January 24: Initial Jobless Claims

Friday, January 25: New Home Sales

If you are considering buying a home or refinancing a home located in Seattle, Sammamish, Gig Harbor or anywhere in Washington state, I’m happy to help you! Click here if I can provide you with a no-hassle mortgage rate quote.

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Mortgage rate update for the week of January 14, 2013

January 14, 2013 by Leave a Comment

This week is packed with economic reports that may impact the direction of mortgage interest rates. Mortgage rates are based on mortgage backed securities (bonds). When the Fed minutes revealed hints that the FOMC may stop purchasing mortgage backed securities last week, mortgage rates ticked slightly higher. However Japan is hinting of buying US bonds, which is helping rates trend lower this morning.

Signs of inflation or the economy recovering may also cause mortgage rates to trend higher. Here are some of the economic indicators scheduled to be released this week:

  • Mon, January 14: No scheduled data – however, Ben Bernanke is speaking this afternoon on monatary policy.
  • Tue, January 15: Producer Price Index (PPI), Retail Sales and Empire State Index
  • Wed, January 16: Consumer Price Index (CPI) and the Beige Book
  • Thurs, January 17: Initial Jobless Claims, Building Permits, Housing Starts and Philadelphia Fed Index
  • Fri, January 18: UoM Consumer Sentiment Index

NOTE: Monday, January 21, 2012 our office will be closed in observance of Martin Luther King Day.

As I write this post (8:24 am pst) the DOW is up 5 at 13493 and MBS for the FNMA 30 year is up slightly.

If you would like a mortgage rate quote for your Washington state home, please click here. I’m happy to help!

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Mortgage update for the week of January 7, 2013

January 7, 2013 by 2 Comments

This week may seem like a real yawn with only the initial Jobless Claims being released on Thursday, January 10, 2013.  

On Thursday we may hear from the Consumer Protection Financial Bureau’s about what defines a “qualified mortgage” (QM). From Bloomberg:

The qualified mortgage rule, mandated by Congress as part of the 2010 Dodd-Frank Act, is aimed at tightening lax underwriting that fueled the housing bubble. The regulations aim to protect consumers from mortgages they cannot afford by requiring lenders to take steps such as verifying income and assets. In return, lenders gain some protection from lawsuits.

Although having a “qualified mortgage” may sound like a does of common sense, we won’t know what we are dealing with until we learn about what constitutes a “qualified mortgage”. For example, currently an industry standard for a debt-to-income ratio is 45%, should the government decide that a DTI of 43% is required in order to be deemed a “qualified mortgage”, many Americans will find themselves not able to obtain a mortgage OR possibly paying a higher rate or fee for a “non-qualified” mortgage. I’m anxiously awaiting Thursday’s news from the CFPB.

If you are interested in refinancing or buying a home in Bellingham, Bellevue, Bainbridge Island or anywhere in Washington, I’m happy to help you!

Filed Under: CFPB, Economy Tagged With: , ,

Mortgage rate update for the week of December 31, 2012

December 31, 2012 by Leave a Comment

Happy last day of 2012! Although this is a short week due to the New Year holiday, it’s packed with economic data that may impact mortgage rates, including The Jobs Report on Friday. Here are a few of the scheduled events for this week:

Monday, December 31, 2012: Last day for Congress to avoid the “fiscal cliff”.

Tuesday, January 1, 2013: HAPPY NEW YEAR! 

Wednesday, January 2, 2013: ISM Index and FOMC Minutes

Thursday, January 3, 2013: ADP National Employment Report

Friday, January 4, 2013: The Jobs Report

Just a quick reminder, I am on a short vacation and will be returning to work on January 3, 2013.

PS: Go HAWKS!!

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What May Impact Mortgage Rates the week of December 24, 2012

December 24, 2012 by Leave a Comment

With the holidays upon us, we don’t have a lot of economic data scheduled for this week. Markets continue to be impacted with the “fiscal cliff” deadline approaching and Congress home for the holidays. Should a deal not come together to avoid falling off the “fiscal cliff” mortgage rates may actually improve as stocks may take a hit. The Bond and Stock Markets will close early today and reopen on Wednesday after the Christmas holiday.

Here are a few of the economic indicators scheduled for this week.

Tuesday, December 25: Merry Christmas!

Wednesday, December 26: S&P/Case-Shiller Home Price Index

Thursday, December 27: Initial Jobless Claims; New Home Sales; Consumer Confidence

Friday, December 28: Chicago PMI and Pending Home Sales

Next week will be another short week with the New Year holiday. ‘Tis the Season! 

From my home to yours, we wish you a very Merry Christmas and Happy Holidays!

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What may impact mortgage rates the week of December 17, 2012

December 18, 2012 by 1 Comment

Boris-S-WortMy apologies for not getting this information posted yesterday, as I try to on every “working” Monday. We had weather related issues and I’m glad to say, all is well now.

This week, mortgage rates will be following the drama surrounding our financial “fiscal cliff”. If traders see optimism that we will avoid “going over the cliff”, you may see mortgage rates trend higher.

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

Monday, December 17: Empire State Index

Tuesday, December 18: NAHB’s Home Builder Confidence (this came in at the highest levels since 2006!)

Wednesday, December 19: Building Permits; Housing Starts

Thursday, December 20: Initial Jobless Claims; Gross Domestic Product (GDP); Existing Home Sales; Philadelphia Fed Index

Friday, December 21: Personal Consumption Expenditures (PCE); Personal Income; Consumer Sentiment (UofM)

As someone who grew up in Renton, a suburb of Seattle, whenever I hear the phrase “Fiscal Cliff” I have an image an evil villian like, Boris S. Wart. Boris S. Wort was the second meanest man in the world and was a character on the J.P. Patches show that many of us watched growing up.

PS: If I can provide you with a mortgage rate quote for your home located in Renton, near the Seattle dump (JP’s former home) or anywhere in Washington state, please click here.

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The Fed says….Mortgage Rates to Remain Low

December 12, 2012 by 1 Comment

2012-08-20-0845This morning FOMC announced no changes to the current Fed Funds rate (this is no surprise). The Fed has decided to keep the Fed Funds rate at 0 – 0.25% until the unemployment rate is under 6.5%.  This may be some good news to home owners who have HELOCs as many of them have rates tied to the prime rate, which is based on the Fed Funds rate.

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Filed Under: Economy, Interest Rates, The Fed - FOMC Tagged With: , ,

Mortgage Update for the Week of December 12, 2010

December 10, 2012 by Leave a Comment

iStock-000020911287XSmallMortgage rates continue to be very low levels. Freddie Mac has been reporting average interest rates for 30 year at under 4% for the last year with 15 year fixed rates being under 3% for the last six months.

While the Fed works at keeping rates at artificially low levels, Congress is considering increasing the guarantee fees to new conventional mortgages to help fund programs that have nothing to do with Fannie Mae, Freddie Mac or even the housing recovery. The guarantee fees (aka g-fees) are factored into the pricing of a mortgage rate. FHA mortgage loans are also becoming more expensive in 2013 with the increase of mortgage insurance premiums.

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