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!

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

Mortgage update for the week of January 7, 2013

January 7, 2013 by 2 Comments

This week may seem like a real yawn with only the initial Jobless Claims being released on Thursday, January 10, 2013.  

On Thursday we may hear from the Consumer Protection Financial Bureau’s about what defines a “qualified mortgage” (QM). From Bloomberg:

The qualified mortgage rule, mandated by Congress as part of the 2010 Dodd-Frank Act, is aimed at tightening lax underwriting that fueled the housing bubble. The regulations aim to protect consumers from mortgages they cannot afford by requiring lenders to take steps such as verifying income and assets. In return, lenders gain some protection from lawsuits.

Although having a “qualified mortgage” may sound like a does of common sense, we won’t know what we are dealing with until we learn about what constitutes a “qualified mortgage”. For example, currently an industry standard for a debt-to-income ratio is 45%, should the government decide that a DTI of 43% is required in order to be deemed a “qualified mortgage”, many Americans will find themselves not able to obtain a mortgage OR possibly paying a higher rate or fee for a “non-qualified” mortgage. I’m anxiously awaiting Thursday’s news from the CFPB.

If you are interested in refinancing or buying a home in Bellingham, Bellevue, Bainbridge Island or anywhere in Washington, I’m happy to help you!

Filed Under: CFPB, Economy Tagged With: , ,

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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Mortgage Rate update for the Week of November 19, 2012

November 19, 2012 by Leave a Comment

mortgageporter-economyCan you believe Thanksgiving is this week? I’m in a bit of shock that the holiday season is upon us. Mortgage Master Service Corporation will close on Thursday, November 22, 2012 and reopen on Monday, November 26, 2012.

Here are a few of the scheduled economic indicators that may impact mortgage rates this week:

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Mortgage Rate update for the week of November 13, 2012

November 13, 2012 by Leave a Comment

mortgageporter-economyMortgage rates continue to provide many the opportunity to reduce their mortgage payments or to qualify to a home at extremely low rates. With the re-election of President Obama, it’s also likely we will see expansion of the Home Affordable Refinance Program to HARP 3.0 as well as the governments prolonged purchasing of mortgage backed securities, manipulating mortgage rates at these historic low levels.

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Mortgage rate update for the week of October 29, 2012

October 29, 2012 by 1 Comment

This week is packed with economic indicators that may move mortgage rates with the grand finale being the Jobs Report on Friday.

Hurricane Sandy is also impacting the industry with the bond markets closing this afternoon and Tuesday. This is the first time in 19 years that the NYSE has closed due to a storm. Some lenders are closing their lock desk due to Hurricane Sandy. My thoughts and prayers to those who are in the path of this storm.

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

Monday, October 29: Personal Spending; Personal Consumption Expenditures and Core PCE; Personal Income

Tuesday, October 30: Auto Sales and Consumer Confidence

Wednesday, October 31: ADP National Employment Report; Employment Cost Index and Chicago PMI – Happy Halloween!

Thursday, November 1: Initial Jobless Claims; Productivity and ISM Index

Friday, November 2: The Jobs Report. NOTE: it’s expected that around 125,000 non-farm payroll jobs were added in September.

Remember mortgage rates are based on mortgage backed securities (bonds). Mortgage rates tend to improve when the stock market is doing poorly as investors will trade the potentially higher returns from stocks for the safety of bonds. The reverse is also true. Mortgage rates may change several times throughout the day.

Next week we have our elections. Please be sure to vote!

If you’re interested in refinancing or buying a home in Seattle, Redmond, Renton or anywhere in Washington State, where I’m licensed, I’m happy to help you.

Filed Under: Economy Tagged With: , ,

Mortgage rate update the week of October 22, 2012

October 23, 2012 by Leave a Comment

Although it may appear that this week doesn’t have a lot going on when you review the scheduled economic reports to be released, don’t that trick you. Tomorrow we’ll hear from the Fed and while we do not expect any changes to the Fed Funds interest rate, investors will be paying close attention to the Fed’s announcement.

Mortgage rates are not only impacted by scheduled economic indicators and the Fed’s continued purchase of mortgage backed securities. This morning, as I write this post (8:00 am pst), the DOW is down 235, due to poor corporate earnings and renewed worries about Spain. When stock markets are taking a hit, traders will often seek the safety of bonds, like mortgage backed securities. 

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

Wednesday, October 24: FOMC Meeting and New Home Sales

Thursday, October 25: Initial Jobless Claims; Durable Goods Orders and Pending Home Sales

Friday, October 26: Gross Domestic Product (GDP); GDP Chain Deflator and Consumer Sentiment (UoM)

Next week, just before the election, we’ll have the Jobs Report.

Mortgage rates remain at very low levels. If you’ve been considering buying a home or an investment property, you may be surprised how affordable today’s mortgage payment may be. If you’re interested buying a home or refinancing your mortgage on your home located anywhere in Washington state, I’m happy to help you. Click here for a free mortgage rate quote for your Washington home.

Filed Under: Economy Tagged With: , ,

Mortgage rate update for the week of October 15, 2012

October 15, 2012 by Leave a Comment

mortgageporter-economyHere are a some of the economic indicators scheduled to be releases this week which may impact the direction of mortgage rates.

Monday, October 15: Retail Sales and Empire State Index

Tuesday, October 16: Consumer Price Index (CPI); Industrial Production and Capacity Utilization

Wednesday, October 17: Building Permits and Housing Starts

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

Friday, October 19: Existing Home Sales

[Read more…]

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