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!

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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.

Filed Under: Interest Rates, The Fed - FOMC Tagged With: , ,

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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What May Impact Mortgage Rates the week of December 24, 2012

December 24, 2012 by Leave a Comment

With the holidays upon us, we don’t have a lot of economic data scheduled for this week. Markets continue to be impacted with the “fiscal cliff” deadline approaching and Congress home for the holidays. Should a deal not come together to avoid falling off the “fiscal cliff” mortgage rates may actually improve as stocks may take a hit. The Bond and Stock Markets will close early today and reopen on Wednesday after the Christmas holiday.

Here are a few of the economic indicators scheduled for this week.

Tuesday, December 25: Merry Christmas!

Wednesday, December 26: S&P/Case-Shiller Home Price Index

Thursday, December 27: Initial Jobless Claims; New Home Sales; Consumer Confidence

Friday, December 28: Chicago PMI and Pending Home Sales

Next week will be another short week with the New Year holiday. ‘Tis the Season! 

From my home to yours, we wish you a very Merry Christmas and Happy Holidays!

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What may impact mortgage rates the week of December 17, 2012

December 18, 2012 by 1 Comment

Boris-S-WortMy apologies for not getting this information posted yesterday, as I try to on every “working” Monday. We had weather related issues and I’m glad to say, all is well now.

This week, mortgage rates will be following the drama surrounding our financial “fiscal cliff”. If traders see optimism that we will avoid “going over the cliff”, you may see mortgage rates trend higher.

Here are a few of the economic indicators scheduled to be released this week:

Monday, December 17: Empire State Index

Tuesday, December 18: NAHB’s Home Builder Confidence (this came in at the highest levels since 2006!)

Wednesday, December 19: Building Permits; Housing Starts

Thursday, December 20: Initial Jobless Claims; Gross Domestic Product (GDP); Existing Home Sales; Philadelphia Fed Index

Friday, December 21: Personal Consumption Expenditures (PCE); Personal Income; Consumer Sentiment (UofM)

As someone who grew up in Renton, a suburb of Seattle, whenever I hear the phrase “Fiscal Cliff” I have an image an evil villian like, Boris S. Wart. Boris S. Wort was the second meanest man in the world and was a character on the J.P. Patches show that many of us watched growing up.

PS: If I can provide you with a mortgage rate quote for your home located in Renton, near the Seattle dump (JP’s former home) or anywhere in Washington state, please click here.

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The Fed says….Mortgage Rates to Remain Low

December 12, 2012 by 1 Comment

2012-08-20-0845This morning FOMC announced no changes to the current Fed Funds rate (this is no surprise). The Fed has decided to keep the Fed Funds rate at 0 – 0.25% until the unemployment rate is under 6.5%.  This may be some good news to home owners who have HELOCs as many of them have rates tied to the prime rate, which is based on the Fed Funds rate.

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Filed Under: Economy, Interest Rates, The Fed - FOMC Tagged With: , ,

Mortgage Update for the Week of December 12, 2010

December 10, 2012 by Leave a Comment

iStock-000020911287XSmallMortgage rates continue to be very low levels. Freddie Mac has been reporting average interest rates for 30 year at under 4% for the last year with 15 year fixed rates being under 3% for the last six months.

While the Fed works at keeping rates at artificially low levels, Congress is considering increasing the guarantee fees to new conventional mortgages to help fund programs that have nothing to do with Fannie Mae, Freddie Mac or even the housing recovery. The guarantee fees (aka g-fees) are factored into the pricing of a mortgage rate. FHA mortgage loans are also becoming more expensive in 2013 with the increase of mortgage insurance premiums.

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Mortgage Rate Update for the week of December 3, 2012

December 3, 2012 by Leave a Comment

mortgageporter-economyNot everything that impacts mortgage rates are scheduled economic indicators, like what I’m sharing with you below in this post. Sometimes Congress tacks on fees that are priced into interest interest rates too. For example, the House of Representatives just passed a new “G-Fee” to help fund an Immigration Bill, HR 1629. This “G-Fee” will impact new Fannie Mae and Freddie Mac mortgages. Why new home buyers and people refinancing have to pay for this bill which does not relate to mortgages during a time housing is trying to recover puzzles me. Click here to see how your House Rep voted on this bill.

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Filed Under: Economy, Interest Rates Tagged With: , , ,
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