Fannie Mae’s Upbeat Mortgage Rate Forecast with Rates in the 5s!

Fannie Mae recently released their monthly forecast for housing. May’s forecast predicts 30 year fixed conforming mortgage rates with rates entering the 5% range in the second quarter of 2026.

While hearing that the 30-year fixed rate might hit the 5% range next year is music to many ears, there are some things I would keep in mind. For starters, the rates are NOT guaranteed – it’s just a forecast… although I’d rather see a forecast with mortgage interest rates trending lower instead of rates pushing higher. 😉

What’s important to keep in mind is that there are A LOT of home buyers who have been waiting for lower rates. As rates trend lower and the markets heat up, home prices will very likely move higher.

If there is a home that you want to buy and you qualify at today’s mortgage rates, I would probably buy that home at today’s price with the plan on refinancing when/if mortgage rates move lower. With that said, you have to keep in mind that again, there are no guarantees that rates will move lower so you have to be prepared for keeping the current rate/payment.

The improvement to interest rate may be offset by increased price in the home. Plus, buying sooner means that you get the opportunity to start paying down your mortgage balance, which creates more equity and you’re buying the same home at a potentially lower price than if you wait AND best of all, it means that you get to start enjoying your new home.

If you’re thinking about buying your next home, I’m happy to review scenarios for you and to create a game plan. Reach out to me for a quick 15-minute call or schedule more time, if you prefer.

 

 

Celebrating my 25 Years in the Mortgage Industry

25 years ago, I left my career in the title and escrow career to become a mortgage loan officer. I announced it on April fools day to the real estate agents that I was no longer going to be their title rep and that I was making the move to the mortgage side. Many were shocked as I had been in the title industry for 14 years and was pretty established. It was a big move! [Read more…]

In Memory of Jim Reppond

Jim Reppond passed away on November 11, 2024. I was so saddened and surprised to learn about this and I just think that I haven’t been ready to accept it. Jim had met me for lunch a couple of months earlier in Seattle and I’m so glad we took the time to catch up. It would be our last conversation. [Read more…]

It’s Fed Day! [Live Post] NO CHANGE to the Fed Funds Rate

8:15 a.m.  Today around 11:00 am PST, we’ll have the decision from the FOMC on whether they are making any adjustments to the federal funds interest rate. Odds are very strong (99.5% per the CME Group) that there will be no change at this meeting. This is what the markets are anticipating. If the Fed surprises us, then markets will react dramatically. The Fed’s actions and market reactions are what may impact mortgage rates today as mortgage rates are based on bonds (mortgage-backed securities).  The Fed does not directly control mortgage interest rates.

Following the Fed announcement today, Fed Chair Powell will hold a press conference. What he says (or what the market interprets from his press conference) may also impact the direction of mortgage interest rates. The markets are watching for signs that inflation is cooling (good for mortgage rates) or if inflation is being stubborn (bad for mortgage rates).

Right now, MBS 30 year is pretty flat (down 4 basis points). [Read more…]

First Mortgage Rate Update for 2025!

We have a lot on the economic calendar that may impact mortgage rates this week, including jobs data. Check out my weekly update to learn how rates are kicking of the new year and also, learn how one of my clients are benefiting from buying a home two years ago.

 

Mortgage Market Update for the Week of September 30, 2024

It’s Jobs Week with the first week of October. Here’s my latest update featuring what may impact mortgage rates this week.

If you would like to learn more about mortgages for your personal scenario, please contact me!

PS: Go Seahawks!!!

Mortgage Market Update for the Week of September 16, 2024

It’s a big week with the FOMC’s highly anticipated meeting wrapping up on Wednesday when we will learn if they’re going to cut the funds rate by 25 or 50 basis points. Watch my weekly update to learn more!

The Fed’s move tomorrow does not directly change mortgage interest rates; however, it does influence mortgage rates as rates are based on mortgage-backed securities (bonds) and are traded similar as stocks.

Changes to the Fed’s funds rate does impact the rates on home equity lines of credit, credit cards and other debts where the interest rate is based on the Prime Rate as the prime rate follows the Fed’s funds rate.

Mortgage rates have been improving and I am already helping people restructure their mortgages and eliminate high-interest rate debts. If you would like to see possible scenarios based on current rates, I’m happy to share this with you with no obligation.

 

 

Helping Your Adult Child Buy a Home

Buying a home for your child is a major financial and emotional decision. It’s a generous gesture that can offer security, stability and help create wealth, but it’s essential to carefully weigh the pros and cons before making this commitment. Here are some important factors to consider: [Read more…]