What may impact mortgage rates this week: June 10, 2013

June 10, 2013 by Leave a Comment

Mortgage rates have been moving higher over the past few weeks. The better than expected data from last Friday’s Jobs Report helped that trend.

There’s not a lot of scheduled economic indicators on calendar for this week so you can expect rates to be impacted by the stock market. If the stock market does well, mortgage rates may move higher. Why? Mortgage rates are based on mortgage backed securities (bonds) and investors will trade the safety of bonds for the potentially better return found with stocks.

Here’s how this week is looking with economic indicators:

  • Thursday, June 13th: Retail Sales and Initial Jobless Claims
  • Friday, June 14th: Producer Price Index (PPI) and Consumer Sentiment (UoM)

This morning, Standard and Poor’s revised the United States credit rating from negative to stable. Remember “good news” tends to cause mortgage rates to deteriorate.

The Treasury will be selling $66B in notes and bonds this week starting tomorrow.

Even though rates are higher than they were last month, they are still very low. If you’re interested in locking in what is still considered a historically low rate on a home located anywhere in Washington state, please contact me.

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Are mortgage rates in the 3’s gone?

June 6, 2013 by

Mortgage rates have been moving higher causing some home buyers and rate shoppers a bit of surprise. Mortgage rates have been trending up with hints of QE3 and the Fed’s bond buying program, which has kept mortgage rates at artificial lows, may be wrapping up soon.  Freddie Mac reports that the 30 year fixed is at 3.91% when paying 0.7 points and if not points are paid, the rate is 4.09%.  Keep in mind that the rates Freddie has posted today are from last week and rates have continued to nudge higher.

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What may impact mortgage rates this week: June 3, 2013

June 3, 2013 by Leave a Comment

Mortgage rates have been trending higher, catching some home buyers and home owners waiting for a much lower rate off guard. Will that trend continue? We have the Jobs Report being released this Friday and if it comes in significantly weaker than expected, we may see rates improve. Historically speaking, mortgage rates are still very low…however, those who are set on the artificially sweet rates we’ve been experiencing, may be disappointed.  You may be interested the graph in MMG Weekly ilustrating how rough May was on mortgage rates.

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

  • Mon., June 3: ISM Index
  • Wed., June 5: ADP National Jobs Report; Productivity; ISM Service Index; and the Fed’s Beige Book
  • Thur., June 6: Initial Jobless Claims
  • Fri., June 7: The Jobs Report

The Jobs Report is the “big daddy” this week with expectations of employers adding 159k new jobs last month. If the jobs report reveals robust employment and figures better than anticipated, we may see rates spike higher. If the report surprises with weaker employment data and less jobs added than expected, we could see an improvement in rates.

As I write this post (June 3, 2013 at 8:50 am) mortgage rates are improving a bit from earlier this morning due to ISM Index coming in worse than expected.  Mortgage rates change constantly. If you are interested in a mortgage rate quote based on your scenario and *current* rates, please click here. NOTE: I can only provide rates for homes located in Washington state, where I am licensed to originate mortgages.

30 year fixed:  3.875% (apr 4.046) priced with 1.232 discount points with closing cost (including points) of $8488. Principal and interest payment = $1,880.05

30 year fixed:  4.000% (apr 4.121) priced with 0.616 discount points bringing estimated closing cost to $6,024 with a principal and interest payment of $1,909.66

15 year fixed: 3.125% (apr 3.332) priced with 0.630 discount points bringing estimated closing cost to $6,080 with a principal and interest payment of $2,786.44.

Rates quoted above are based on a 740 or higher mid-credit score with a loan amount of $400,000 and a sales price of $500,000 for an 80% loan to value for a purchase in Seattle closing by July 11, 2013 using conventional financing.

If you are a pre-approved home buyer, you may want to contact your mortgage professional to make sure the rise in mortgage rates has not impacted your approval status. Especially if your approval letter was prepared over a week ago or your pushing your qualifying limits with higher debt to income ratios.

If I can help you with your refinance or purchase with your home located anywhere in Washington state, please contact me.

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Updating your Preapproval Letter

June 1, 2013 by 2 Comments

j0403639_2I’m often asked by home buyers “does my preapproval letter expire” or “what happens if we don’t find a home in a few months”. Preapproval letters should include two dates: when the letter was prepared and when the preapproval expires.  Fear not, most of the time, it should just take providing a couple documents to your loan officer so they can “dust off” your application and provide an updated pre-approval letter.

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Filed Under: Real Estate Agents, Residential Purchase Tagged With: ,

Attend my Home Buyer Education Class on July 13, 2013

May 31, 2013 by

UPDATE 7/14/2013:  This class has already taken place.  If you would like to attend another home buyer seminar that I’m teaching, visit my home buyer education page.

I will be teaching a home buyer education class on Saturday, July 13, 2013 at the High Point Library in West Seattle.

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Filed Under: Classes for Home Buyers, Down Payment Assistance, Events, Home Advantage Program, House Key Opportunity Tagged With: , , , , , , ,

Buying a home together before you get married

May 29, 2013 by Leave a Comment

Last month I read an interesting article from Coldwell Banker about couples who are buying homes together before they get married. A survey was conducted which “revealed that 1 in 4 young couples are buying a home together before tying the knot”.

“…buying a home together has become “the new engagement ring” for some young couples. The homebuying process forces couples to deal with their competing feelings of money and how to spend it, and that is why successfully purchasing a home with someone else is deemed a significant accomplishment in any relationship. It means the couple has been able to overcome their differences in an effort to create a better future together.”

The survey found that 24% of couples who buy a home before they are married are 18 – 24 years old. When I bought my first house, I was 21 years old and it was with my (then) fiance…many years ago! 🙂

When couples buy together, before they are married (or if they never plan on marrying), they need to consider how they will vest on title. This is important because if either person passes away, how they hold title (vesting) may determine what happens to the home. Most often, vesting is determined a home is purchased by the language on the deed. Two single people who own a home together have different rights than a married couple in Washington state.

I’m not an attorney and I’m feeling a bit like “Debbie Downer” discussing this tidbit…but it is important to consider. Here are two brochures provided by title companies that you can review with your attorney to discuss how to vest in title.

And don’t miss this video of Tim Daniels, Title Officer discussing different ways to take title for real property in Washington state.

If you are considering buying a home anywhere in Washington state and need help with your home loan mortgage, I’m happy to help you!

Filed Under: Residential Purchase, Title Insurance Tagged With: , , ,

What May Impact Mortgage Rates the Week of May 27, 2013

May 28, 2013 by

We are back to work following the Memorial Day holiday and mortgage rates are trending higher this morning. Mortgage interest rates are still at historically low levels, however they are off their extreme lows.

Yesterday, markets were closed in observance of Memorial Day. Here are some of the scheduled economic indicators that may impact mortgage rates this week:

  • Monday, May 27: Memorial Day
  • Tuesday, May 28: S&P/Case Shiller Home Price Index and Consumer Confidence
  • Thursday, May 30: Initial Jobless Claims, Gross Domestic Product (GDP), GDP Chain Deflator and Pending Home Sales
  • Friday, May 31: Personal Consumption Expenditures (PCE), Personal Income, Personal Spending, Chicago PMI and Consumer Sentiment (UoM)

This morning, the S&P/Case-Shiller Home Price Index for March revealed that year over year, home prices went up 10.9% based on the 20 City Composite. This is the largest increase to home prices since 2006. Seattle’s home prices, according to this report, were up 10.6% year over year.

As I write this post (6:52 am), the DOW is up 171 points and, as I mentioned earlier, mortgage backed securities (bonds) are getting beat up. Remember, investors will trade the safety of bonds for the potentially quicker return found with stocks. As the stock market continues to rally, you can anticipate mortgage rates to continue to trend higher.

You can still have a 30 year fixed rate in the “3’s” as of this morning…you’ll just have to pay more for it.  As of 7:00 am, I’m quoting:

3.875% priced with 0.719% in discount points based on a loan amount of $400,000 with a sales price of $500,000 (80% loan to value) and 740+credit scores (apr 4.005%). Based on a 30 year fixed rate for a purchase in greater Seattle closing July 5, 2013 or sooner.

DON’T FORGET: this is your last week to start an FHA loan and still have mortgage insurance that will terminate. FHA case numbers issued after this will have mortgage insurance on the life of the loan.

If you would like me to provide you with a mortgage rate quote for your home located anywhere in Washington state, where I’m licensed, click here.

 

 

Filed Under: Economy Tagged With: , , , ,

What Sales Price Can I Buy with $100,000 Down Payment

May 23, 2013 by

EDITORS NOTE: More loan programs and improved guidelines are now available… and of course the rates quoted below are expired. If you would like me to review your scenario and provide you with a free rate quote for your home in Washington state, please click here.

I recently met with clients who have saved $100,000 to use for down payment and closing cost for a home in Bellevue.  They easily qualify for the mortgage payment with their combined incomes and the both have excellent credit with scores of 740 or higher. They are most interested in seeing what sales prices they could qualify for with the $100,000 they had saved for down payment and closing cost using available mortgage programs.

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Filed Under: Residential Purchase Tagged With: , ,
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