Mortgage rates are based on mortgage backed securities (bonds) and may change throughout out the day. Investors will seek the safety of bonds when stock markets are deteriorating. The reverse is true: good news for the economy (as well as inflation) tend to cause mortgage rates to rise.
Mortgage Rate Movers for the Week of March 12, 2012 and the FOMC Rate Decision
March 13, 2012 by Leave a Comment
What May Move Mortgage Rates the week of March 5, 2012
March 5, 2012 by Leave a Comment
This week ends with probably one of the most important scheduled economic indicators: The Jobs Report. Not only does the Jobs Report reveal whether or not more Americans are going back to work, it also indicates signs of inflation (wage inflation). Both good news and inflation may cause mortgage rates to trend higher. Numbers that are weaker than expected may cause rates to improve. This is because mortgage rates are based on mortgage backed securities (bonds) and investors will either seek the safety of bonds or possible improved returned with stocks depending on data.
Mortgage Rate Market Movers for the Week of February 13, 2012
February 13, 2012 by Leave a Comment
We have plenty of economic indicators on the plate for this week not to mention to continued Euro-story. Remember, positive information, when the stock market is doing well or data that indicates positive inflation tends to cause mortgage rates to rise. Mortgage rates are based on bonds (mortgage backed securities) and investors tend to trade the safety of bonds for better return found with stocks when possible.
There are no economic indicators scheduled for today and the DOW is currently up 34 at 12,836 as I publish this post on 7:45 am PST on February 13, 2012.
Here's are a few reports that are scheduled for this week:
Tuesday, February 14, 2012: Retail Sales. HAPPY VALENTINES DAY!
Wednesday, February 15, 2012: Empire State Index, Industrial Production, Capacity Utilization and FOMC Minutes
Thursday, February 16, 2012: Building Permits, Housing Starts, Producer Price Index (PPI), Initial Jobless Claims and Philadelphia Fed Index
Friday, February 17, 2012: Consumer Price Index (CPI)
Today's my first day back from a couple days off at Mortgage Tech Summit in Scottsdale so I won't have time to update this post with live rate quotes. I will share live rate quotes on Twitter AND I'm happy to provide YOU with a no obligation mortgage rate quote for your home located anywhere in Washington state. For your personal mortgage rate quote, click here.
Mortgage Update for the first week of 2012
January 3, 2012 by Leave a Comment
Even though this week is another short one from yesterday's holiday, it's packed full of economic indicators that may impact mortgage rates:
Tuesday, January 3: ISM Index and FOMC Minutes released.
Thursday, January 5: Initial Jobless Claims and ISM Services Index
Friday, January 6: THE JOBS REPORT
Positive economic data tends to cause mortgage rates to trend higher. This is because investors will pull money from the safety of bonds (like mortgage backed securities) for a possibly better return with stocks. The reverse is also true. Also remember that mortgage rates can and do change often, sometimes several times a day.
As I write this post, the ISM Index has already been released this morning revealing stronger manufacturing data than anticipated. The DOW is up around 240 and MBS (mortgage backed securities) are "in the red".
For your personal mortgage rate quote for your home located in greater Seattle, Bellevue, Walla Walla or anywhere in Washington State, please contact me.
Happy New Year!
Risk and Reward: the Trade-offs of Buying a Distressed Home
September 16, 2011 by Leave a Comment
Many home buyers are interested in taking advantage of the lower prices offered on distressed homes. Distressed homes are those that are short sales or foreclosures (REO) and in the Seattle area, the sales price of distressed homes were discounted about 37.4% in August over a "non-distressed" home.
Something to keep in mind before you buy a "discounted" distressed home is that these transactions are not as "easy" as a traditional, non-distressed sale. For starters, you're most likely dealing with a bank (and/or one of their representatives) as one of the selling parties. As much as you would think they really want to sell the property to get it off their books, they can leave you wondering where their heads are at throughout the transaction.
This may be especially true with a short-sale if there are two mortgages on the property. Sometimes the second mortgage/lien holder will take their sweet time approving the transaction and just prior to closing, only to demand that "someone" pay them thousands of dollars to close. By the way, this extortion money payment must be disclosed on the HUD-1 Settlement Statement or it's fraud. Even if the first and second mortgage are with the same bank/lender, please do not assume they won't play games with you or each other…it happens.
Something else that I've recently seen happen with distressed property is vandalism…just days before closing, someone steals the appliances or even takes plants from the garden. Vandalism could happen to non-distressed home as well but since most of these properties are vacant, they seem to be getting targeted.
These transactions tend to take longer to close and may have more drama. Be prepared to have your rate lock extended, perhaps a few times! If you're patient and can keep in mind that you're probably getting a discounted price, the rewards may be worth it if you can tolerate the risk and all that goes with it.
In my experience, I've found that Fannie Mae Homepath properties have had the least amount of issues especially when you factor in the attractive financing programs that are available for owner occupied and investment property.
If you're considering buying a short sale or foreclosed home anywhere in Washington state, I'm happy to help you with the financing.
