Typically on the first Friday of every month, the Bureau of Labor Statistics releases the Employment Situation Summary, otherwise known as The Jobs Report. This report details specific employment trends, including how many Americans are employed with “non-farm” jobs, trends in various fields of employment, income and hours worked. It also includes the “official” unemployment rate. The data contained in the Jobs Report carries a lot of weight and is considered one of our country’s stronger economic indicators.
Why is the Jobs Report so important to mortgage rates?
May 3, 2013 by 1 Comment
Mortgage Rate Update for the Week of March 18, 2013
March 18, 2013 by Leave a Comment
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.
Mortgage rate update for the week of March 11, 2013
March 11, 2013 by Leave a Comment
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.
Mortgage rate update for the week of February 11, 2013
February 11, 2013 by Leave a Comment
Although still very low, mortgage rates have been trending higher. This morning I’m updating a quote for a Seattle home owner who is considering refinancing. The same rate I quoted her a month ago today at “par” (no discount points) will now cost a full discount point or is 0.125 – 0.25% higher in interest rate with similar pricing. I have more on current mortgage rates below.
As the economy improves and the stock market rallies, mortgage rates tend to rise. This is because investors will trade the safety of bonds (like mortgage backed securities) for the potential better return with stocks.
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.
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!
Mortgage rates could rise earlier than expected
January 4, 2013 by 1 Comment
Yesterday the minutes to the December 13, 2012 FOMC Meeting were released catching many off guard revealing the Fed may pull back on the purchase of mortgage backed securities earlier than originally planned.
Here are some bits from the minutes related to mortgage rates:
“While almost all members thought that the asset purchase program begun in September had been effective and supportive of growth, they also generally saw that the benefits of ongoing purchases were uncertain and that the potential costs could rise as the size of the balance sheet increased…
Several others thought that it would probably be appropriate to slow or to stop purchases well before the end of 2013, citing concerns about financial stability or the size of the balance sheet.”
Noting that “several others” of the FOMC are considering to pull back or stop buying mortgage backed securities prior to the end of 2013 caused a major sell off in the bond markets yesterday following the release of the minutes.
Mortgage rates have been at artificially low rates largely due to the Fed’s participation in buying mortgage backed securities (MBS). Should the Fed cease purchasing MBS and treasury securities, many anticipate that “real” mortgage rates would be closer to what we see in the jumbo or non-conforming markets. Currently jumbo rates are at least full point in rate higher than conforming mortgage rates based on a 30 year fixed.
If you have been considering buying or refinancing your home and benefiting from today’s low rates, I recommend doing so soon.
If your home is located anywhere in Washington state, where I am licensed to originate mortgages, I am happy to help you! Click here for a mortgage rate quote.
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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