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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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.

 

 

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What May Impact Mortgage Rates this Week: May 13, 2013

May 13, 2013 by Leave a Comment

Mortgage rates, although still very low, are trending higher this morning following stronger than expected Retail Sales data and concerns over the Fed ceasing QE3 sooner than expected. In addition, the stock markets have been reaching new highs which typically translates to higher mortgage rates as investors trade the safety of bonds (like mortgage backed securities) for the potentially higher return found in stocks. Currently mortgage rates are about 0.125% higher in rate than where they were on Friday evening.

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

Monday, May 13: Retail Sales

Wednesday, May 15: Producer Price Index (PPI) and Empire State Index

Thursday, May 16: Consumer Price Index (CPI); Housing Starts; Initial Jobless Claims; Building Permits; and Philadelphia Fed Index

Friday, May 17: Consumer Sentiment (UoM)

When QE3 ends and the Fed discontinues their bond buying program which has been keeping mortgage rates artificially low, we will see mortgage rates trend higher. It’s estimated that rates will be closer to what non-conforming/jumbo rates currently are.

If you’re interested in a rate quote for your home located in Burien, Bothell, Bellingham or anywhere in Washington state, where I’m licensed, click here.

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Mortgage Rate Update for the Week of May 6, 2013

May 6, 2013 by Leave a Comment

This week’s calendar is looking a little light as far as scheduled economic indicators which may influence the direction of mortgage interest rates. 

Thursday, May 9: Initial Jobless Claims

Wow…. that was exciting! 🙂

On Tuesday, the Treasury will begin to sell $27 billion in notes and bonds which may impact mortgage rates as they are based on mortgage backed securities (bonds).

Remember, you can follow me on Twitter @mortgageporter or on Facebook to trending information about mortgages. Of course you can always subscribe to my blog too. You can unsubscribe at any time.

If you are interested in refinancing or buying a home (primary, second home or investment property) in LaConner, Langley, Lynnwood or anywhere in Washington state, where I’m licensed, I’m happy to help you. Click here for a mortgage rate quote.

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Why is the Jobs Report so important to mortgage rates?

May 3, 2013 by 1 Comment

MortgagePorter-JobsReportTypically on the first Friday of every month, the Bureau of Labor Statistics releases the Employment Situation Summary, otherwise known as The Jobs Report. This report details specific employment trends, including how many Americans are employed with “non-farm” jobs, trends in various fields of employment, income and hours worked. It also includes the “official” unemployment rate. The data contained in the Jobs Report carries a lot of weight and is considered one of  our country’s stronger economic indicators.

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What may impact mortgage rates the week of April 29, 2013

April 29, 2013 by Leave a Comment

This week is jam packed with economic data that may move mortgage rates, including the Fed meeting wrapping up on Wednesday and Friday’s Jobs Report.

This morning’s PCE came in with inflation continuing to be tame (good news for bonds, like mortgage backed securities). And more good news for housing, Pending Home Sales for March came in much stronger than expected.

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

Monday, April 29: Personal Consumption Expenditures and Core PCE; Pending Home Sales

Tuesday, April 30: Employment Cost Index (ECI); S&P/Case-Shiller Home Price Index; Chicago PMI; Consumer Confidence

Wednesday, May 1: ADP National Employment Report; ISM Index; FOMC Meeting

Thursday, May 2: Productivity and Initial Jobless Claims

Friday: The Jobs Report; ISM Services Index

As I get ready to publish this post (9:30 am) the DOW is up 94 points at 14,806 and mortgage backed securities are up 12 bps (FNMA 30 year 3.0%).

If you want to keep current with the results from the economic indicators for the rest of this week, you can follow me on Twitter @mortgageporter or Facebook.

Of course if you are considering buying or refinancing a home located in Everett, Edmonds, Enumclaw or anywhere in Washington state, where I’m licensed, I’m happy to help you – click here for a mortgage rate quote.

 

 

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What May Impact Mortgage Rates the week of April 22, 2013

April 22, 2013 by Leave a Comment

Mortgage rates continue to be very low, helping to spur on greater Seattle area home buyers and home owners wanting to refinance. If you’ve been considering locking in a low mortgage interest rate, now could be a good time to do so!

Here are some of the economic indicators scheduled to be released this week that may impact mortgage interest rates.

  • Monday, April 22: Existing Home Sales
  • Tuesday, April 23: New Home Sales
  • Wednesday, April 24: Durable Goods Orders
  • Thursday, April 25: Initial Jobless Claims
  • Friday, April 26: Gross Domestic Product (GDP) and Consumer Sentiment Index (UoM)

Don’t forget, we have just over one month left to get FHA case numbers in order to avoid having FHA mortgage insurance on the life of the loan. This will impact FHA case numbers issued June 3, 2013 and later. FHA case numbers are typically issued after full application.

If you are considering buying or refinancing a home in Sammamish, Sumner, Sultan or anywhere in Washington State, where I’m licensed to be a Loan Officer, please contact me I’m happy to help you!

You can also follow me on Twitter @mortgageporter or “like me” on Facebook.

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What may impact mortgage rates the week of April 15, 2013

April 15, 2013 by Leave a Comment

Here are some of the economic indicators scheduled to be released this week which may impact mortgage rates:

Monday, April 15: Empire State Index

Tuesday, April 16: Building Permits; Consumer Price Index (CPI); Housing Starts; Industrial Production and Capacity Utilization

Wednesday, April 17: Fed’s Beige Book

Thursday, April 18: Initial Jobless Claims and Philadelphia Fed Index

Remember, mortgage rates are based on mortgage backed securities. When the stock market is deteriorating, mortgage rates tend to improve (or not decline) as investors will seek the safety of bonds over the quicker profits potentially found in stocks. And when the stock market is rallying, mortgage rates tend to trend higher as investors seek a higher return from stocks.

What also impacts mortgage rates is the Fed’s buying of mortgage backed securities to keep rates lower while unemployment is higher. By keeping mortgage rates low, the housing market has improved by making mortgages more affordable (and tempting with extremely low rates) to buy homes and also by helping Americans reduce their mortgage payments by hundreds of dollars each month, which puts more cash back into the economy.

Speaking of refi’s, last week, HARP 2.0 was extended through 2015. 

Another important date to remember is May 31, 2013. If you’re considering an FHA refinance or streamline refi or are in the process of buying a home using FHA financing, you’ll want to start soon. FHA case numbers issued June 3 or later will have mortgage insurance for the life of the FHA loan (until it is refinanced or paid off).

If you are interested in buying or refinancing a home located in Bellingham, Bainbridge Island, Bellevue or anywhere in Washington state, I’m happy to help you. Click here for a mortgage rate quote.

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