I did a little experiment on Tuesday. One of my Seattle home buyers asked why there’s a difference between the rates I’ve provided and those you can find posted online. I explained to him that the rates posted online are often not available and typically those sites are used for “lead generation” purposes. When consumers enter their email addresses and phone numbers, they may start to feel very popular by being inundated with phone calls and emails by mortgage lenders. When someone fills out a form requesting mortgage information or a rate quote online, they are considered a “hot lead” and their contact info is worth money and may be sold and re-sold.
It shouldn’t be a hassle to get a mortgage rate quote
March 27, 2014 by 2 Comments
Reader Question regarding Down Payments for Second Homes
February 13, 2014 by Leave a Comment
I received this comment from one of my readers on a post about occupancy and I thought it would make a good post all on it’s own.
What is the normal down payment on a second home? Our credit is in the “good” range and our debt to income is very good.
What May Impact Mortgage Rates this Week: January 27, 2014
January 27, 2014 by 2 Comments
What does this grainy picture of me and Coach Knox have to do with mortgage rates? Nothing… but this week has everything to do with the Seattle Seahawks as we count the minutes down to the Super Bowl!! This photo was taken in 1986 for a calendar back when I worked in a title unit at Chicago Title… I’m wearing Kenny Easley’s uniform and yes, that is really Chuck!
This week is packed full of economic indicators that my impact the direction of mortgage interest rates. Also, mortgage rates are based on bonds (mortgage backed securities) and when there is a sell off in the stock market, we tend to see mortgage rates improve. This is because investors will seek the safety of bonds over the volatility sometimes found with stocks. We’re seeing a bit of that now with mortgage rates trending lower.
What May Impact Mortgage Rates this Week: January 13, 2014
January 13, 2014 by 1 Comment
Mortgage rates are improved following Friday’s disappointing Jobs Report.
Mortgage rates are based on bonds (mortgage backed securities) which can react in reverse to stocks. If stocks are on a hot streak, you may see investors trade of safety of bonds for the potentially quicker return found in stocks (the reverse is also probable). Signs of inflation may also cause mortgage rates to trend higher.
Here are the economic indicators scheduled to be released this week (no indicators are scheduled for today):
History of Mortgage Rates [Graph]
January 7, 2014 by Leave a Comment
I began in the title industry in 1986 and then moved to my mortgage career in 2000. Thanks for creating this graph, Zillow, illustrating that rates truly are and have been at historic lows. During 2014, I expect we’ll see mortgage rates trend higher although still remain “historically low”…just not a the levels many have became accustomed to.
What May Impact Mortgage Rates this Week: January 6, 2014
January 6, 2014 by 1 Comment
This week we’ ll be watching for the minutes from the last FOMC meeting and the Jobs Report as they may impact the direction of mortgage interest rates. It’s anticipated that employers added 197k jobs in December. Here are the economic indicators scheduled to be released this week:
What May Impact Mortgage Rates this Week: December 23, 2014
December 23, 2013 by Leave a Comment
Happy Holidays! With this being a short week due to Christmas, we may see a bit more volatility with mortgage rates with many traders taking time off for the holidays. Markets will be closing early on Tuesday for Christmas Eve and will be closed all day Wednesday. Here are some of the economic indicators scheduled to be released this week:
New Conforming Price Adjustments for Mortgage Rates
December 19, 2013 by 3 Comments
UPDATE: DECEMBER 23, 2013: Incoming Director of the FHFA, Mel Watts has announced that he will delay the increase to conforming price adjustments (aka LLPA or guarantee fees).
This week Fannie Mae revealed conforming price adjustments (LLPA) which will increase the cost for mortgage rates in 2014. This complied with the Fed beginning to pull back on their bond buying program will certainly cause mortgage rates to trend higher.
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