Mortgage rates are based on bonds (mortgage backed securities) and are traded fairly similar as stocks. Investors tend to favor stocks over bonds as stocks tend to provide a better return. However, investors will opt for bonds over stocks when they are seeking safety when markets are tumultuous. When the stock market is on a run, odds are mortgage rates may be moving higher as investors are selecting stocks over bonds. And when the stock market is tanking, mortgage rates tend to improve for the same reason. [Read more…]
How does economic news impact mortgage interest rates?
August 1, 2018 by Leave a Comment
Mortgage Rates Bouncing Along
July 12, 2018 by Leave a Comment
Freddie Mac released their Prime Mortgage Market Survey this morning showing that last week, average mortgage rates slightly ticked higher.
I don’t post the PMMS weekly reports from Freddie Mac every week (you can see them here), however from my last post on this, you can see there is very little difference in interest rates compared to almost 1.5 months ago.
This is good news for people who are considering buying or refinancing their homes with mortgage interest rates staying historically lower (see the bottom time line on the pic above). If you need a mortgage on a home located anywhere in Washington state, where I’m licensed, I am happy to help you! Click here for a mortgage rate quote.
Why is My Mortgage Payment Going Up?
June 28, 2018 by 2 Comments
If you live in the greater Seattle area, you may be receiving a notice from your mortgage servicer stating that they need to adjust your mortgage payment because of an “escrow shortage”. We actually just received such notice from our mortgage servicer. [Read more…]
USDA Maps Updated
June 28, 2018 by Leave a Comment
Earlier this month, USDA updated the maps that determine if homes are eligible for USDA financing. USDA allows eligible home buyers to purchase a home with no down payment. In order the qualify, the borrowers must meet the income limit requirements and the property needs to be in a designated rural area.
Current eligible areas include areas like Enumclaw, Fall City and Vashon Island as well as parts of Black Diamond and parts of Duvall. The specific address really needs to be ran as homes directly across the street from each other may or may not be eligible. [Read more…]
The Beauty of a Bridge Loan
June 27, 2018 by Leave a Comment
I recently helped a couple successfully close on their new home in Seattle before having to close on their former home in Everett. By using a bridge loan to access equity on the Everett home, they were able to make a winning offer on the Seattle home without it having to be “subject to the sale” of their former home. This help to make their offer far more attractive in a very competitive real estate market. [Read more…]
Coming Soon: Freddie Mac’s HomeOne Mortgage Program
June 21, 2018 by Leave a Comment
Later next month, Freddie Mac will be offering a new program for first time home buyers. This mortgage program offers low down payment options without the income limit or geographic restrictions that Home Possible has.
HomeOne will be available for both purchases and rate-term refinances on single family dwellings. At least one borrower on the application must be a first time home buyer when the transaction is a purchase and home buyer education is required. [Read more…]
Possible Relief for Seattle – King County Home Buyers
June 15, 2018 by Leave a Comment
The Northwest Multiple Listing Service issued a press release indicating that we are finally seeing an increase in new listings being added to the market. The 14,524 new listings that came on during May, in the 23 counties that the NWMLS serves, are the most listings added in one month in 10 years. In King County, there were almost 1000 homes added to the market creating just over one month of inventory – the first time since September of last year. Here’s a link to the NWMLS market snapshot for May 2018. [Read more…]
Fed Increases Funds Rate by 0.25%
June 13, 2018 by Leave a Comment
As expected, the Fed increased the Funds rate by 0.25% moments ago. The markets were anticipating this move by the Fed and, as I write this post, I’m not seeing any significant rate changes to mortgage interest rates. The rates were already “baked in the cake”. Had the Fed decided to increase rates beyond 0.25% or not to take action, we would potentially be being seeing a reaction with the bond market which would be reflected in mortgage interest rates. [Read more…]
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