Washington State Mortgages, Made Clear. Buying or Refinancing? Let's find the right loan together.
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!
