This 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.
The Fed says….Mortgage Rates to Remain Low
December 12, 2012 by 1 Comment
Mortgage Update for the Week of December 12, 2010
December 10, 2012 by Leave a Comment
Mortgage 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.
Seattle PI reports Surging Home Prices in King County
December 8, 2012 by Leave a Comment
This week Aubrey Cohen from the Seattle PI reported that sales prices in King Count jumped up just shy of 20% last month:
The median price of a King County house that sold in November was $385,000, up 19.7 percent from a year earlier and 4.1 percent from this October, the Northwest Multiple Listing Service reported Wednesday. The median price in Seattle was $425,000, up 18.1 percent from last November and 1.2 from October.
Some non-distressed homes continue to experience bidding wars as inventory remains low. Here are some tips on what you can do to prepare for a “bidding war”.
Experts speculate that part of the jump in sales price could be from home buyers taking advantage of extremely low mortgage rates to buy a higher priced home.
If you are interested in buying a home, whether it’s your primary home, a vacation home or an investment property, I strongly recommend getting preapproved first. Being preapproved will help give you an advantage over unprepared buyers.
If you are considering buying a home anywhere in Washington, I’m happy to help you with your mortgage needs. I have helping people buy and refinance homes in Washington at Mortgage Master Service Corporation since April 2000.
Mortgage Rate Update for the week of December 3, 2012
December 3, 2012 by Leave a Comment
Not everything that impacts mortgage rates are scheduled economic indicators, like what I’m sharing with you below in this post. Sometimes Congress tacks on fees that are priced into interest interest rates too. For example, the House of Representatives just passed a new “G-Fee” to help fund an Immigration Bill, HR 1629. This “G-Fee” will impact new Fannie Mae and Freddie Mac mortgages. Why new home buyers and people refinancing have to pay for this bill which does not relate to mortgages during a time housing is trying to recover puzzles me. Click here to see how your House Rep voted on this bill.
Mortgage Rate Update for the week of November 26, 2012
November 26, 2012 by Leave a Comment
Happy Cyber Monday! I hope you had a wonderful holiday weekend with family and friends.
Here are some of the scheduled economic indicators that may impact mortgage rates for this week:
Tuesday, Nov. 27: Durable Goods Orders; Auto Sales; Consumer Confidence
Wednesday, Nov. 28: New Home Sales; the Fed’s Beige Book
Thursday, Nov. 29: Initial Jobless Claims; Gross Domestic Product (GDP); GDP Chain Deflator; Pending Home Sales
Friday, Nov. 30: Personal Consumption Expenditures and Core PCE; Personal Income; Personal Spending; Chicago PMI
It’s hard to believe that next week is December. As usual, the first Friday of the month will bring us the Jobs Report.
Remember, mortgage rates are based on mortgage backed securities (bonds). Investors will seek the safety of bonds when the stock market is not providing desired returns. Currently, the DOW is down 72 as I write this post (9:56 am). Concerns about Greece and the “Fiscal Cliff” seem to be helping all ready low mortgage rates remain at very low levels.
If you are interested in a mortgage rate quote for your home in Bellevue, Bellingham, Bainbridge Island or anywhere in Washington State, I’m happy to help you: click here.
You can see my live mortgage rate quote and other mortgage tidbits by following me on Twitter @mortgageporter or on Facebook.
Mortgage Rate update for the Week of November 19, 2012
November 19, 2012 by Leave a Comment
Can you believe Thanksgiving is this week? I’m in a bit of shock that the holiday season is upon us. Mortgage Master Service Corporation will close on Thursday, November 22, 2012 and reopen on Monday, November 26, 2012.
Here are a few of the scheduled economic indicators that may impact mortgage rates this week:
Mortgage Rate update for the week of November 13, 2012
November 13, 2012 by Leave a Comment
Mortgage rates continue to provide many the opportunity to reduce their mortgage payments or to qualify to a home at extremely low rates. With the re-election of President Obama, it’s also likely we will see expansion of the Home Affordable Refinance Program to HARP 3.0 as well as the governments prolonged purchasing of mortgage backed securities, manipulating mortgage rates at these historic low levels.
Mortgage rate update for the week of November 5, 2012
November 5, 2012 by Leave a Comment
Tomorrow is election day. Have you voted yet?
Here are a few of the economic indicators scheduled to be released this week:
Monday, November 5: ISM Services Index
Tuesday, November 6: ELECTION DAY!
Wednesday, November 7: Crude Inventories
Thursday, November 8: Initial Jobless Claims
Friday, November 9: Consumer Sentiment
On Monday, November 12, 2012, Mortgage Master Service Corporation will be closed in observance of Veterans Day.
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