It’s our first update for the new year! This week is packed with economic data scheduled to be released. Watch this week’s video for more info!
Mortgage Rate Update for the Week of January 2, 2024
January 2, 2024 by Leave a Comment
Mortgage Rates Trending Lower
December 29, 2023 by Leave a Comment
Freddie Mac’s weekly PMMS report was released yesterday showing that rates continue to trend lower.
All Eyes are on the Fed [Live Post]
December 13, 2023 by Leave a Comment
This morning we received some mortgage rate friendly news on the PPI (producer price index) showing that overall inflation was flat last month. This bit news is just hours before the Fed wraps up their two-day meeting and announcement on any movement with the Fed Funds Rate at 11:00 PST. Stay tuned! I will continue to update this post today. [Read more…]
Mortgage Rate Update for December 11, 2023
December 11, 2023 by Leave a Comment
It’s Fed Day! [Live Post] No Change to the Fed Funds Rate!
September 20, 2023 by Leave a Comment
Good morning! It’s just before 7:00 am PST as I’m writing this post. In a couple of hours, we’ll hear the announcement from the FOMC wrapping up their two day meeting on measures they will take to get inflation in line, which includes adjustments to the Fed Funds rate. The Fed Funds rate does not directly impact mortgage interest rates (except for HELOCs attached to the Prime rate), however the action the Fed takes does influence the direction of mortgage interest rates. Mortgage interest rates are based on bonds (mortgage-backed securities or MBS) and react similarly to stocks. Inflation is the “arch enemy” of bonds, which is a big part of why mortgage rates have been higher these past few years. Should the Fed indicate that inflation is taming and investors believe what the Fed is saying, we should see mortgage rates improve…and of course, the opposite is true. [Read more…]
BREAKING NEWS: FHFA Rescinds the DTI Price Hit (LLPA)
May 10, 2023 by Leave a Comment
The Federal Housing Finance Agency (FHFA) announced earlier today that it is rescinding the debt-to-income (DTI) loan level price hit adjustment (LLPA) that was announced in January of this year. Previously, people with a debt-to-income ratio higher than 40% with a loan-to-value greater than 60% would have an additional price hit to their interest rate. This price hit makes it even more challenging for someone who is pushing the DTI limit to remain under the 40% number to avoid having either a higher rate or paying more for the same rate because of the LLPA. The additional price hit for DTI ranged from 0.25%-0.375% depending on the loan to value/how much equity is in the transaction. On a $400,000 loan, this would be an additional cost of $1,000 to $1,500 if paid as “points” instead of having it priced into the interest rate. [Read more…]
Freddie Mac reports Mortgage Rates Trending Lower
April 6, 2023 by Leave a Comment
This morning Freddie Mac released their weekly Primary Mortgage Market Survey (PMMS) revealing that mortgage rates slightly improved last week.
It’s important to note that the rates from the PMMS are based on an average from last week… so they are not current.
If you would like me to provide you with current rates based on your personal scenario, I am happy to help you!
Help! Help Me, Rhonda!
March 21, 2023 by Leave a Comment
This past month or so, I have been helping people deal with issues with their mortgage lenders. This isn’t entirely unusual, but it seems to be happening more often in this current market. Sometimes, the client leaves the lender and I “adopt” their transaction and other times, they are able to work it out with the other lender.
I think that part of the issue is that mortgage rates are so volatile right now… and have been for a few months. With mortgage rates in a higher range than what we’ve become accustomed to, more people are focused in on interest rates. Yes, the interest rate you pay on your mortgage IS important, but it’s not the only factor and, in the event a lender is not able to close on a mortgage, choosing a lender mainly because of interest rates can be an expensive decision.
Another factor is that, in Washington state, only about 60% of licensed mortgage loan officers opted to renew their license in 2023. A 40% reduction is pretty significant… this does not factor in the loan officers who work for banks or credit unions (that are not required to be licensed) and who have been laid off or chosen to find another field for employment. [Read more…]
