Mortgage 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.
Mortgage Rate update for the week of November 13, 2012
November 13, 2012 by Leave a Comment
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.
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.
Mortgage rate update for the week of October 15, 2012
October 15, 2012 by Leave a Comment
Here 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
Mortgage rate update for the week of October 1, 2012
October 1, 2012 by Leave a Comment
I cannot believe it’s October, can you? Perhaps it’s our extended summery weather we are experiencing in Seattle. This being the first week of a month means that we have the Jobs Report being released this Friday. The Jobs Report tends to impact mortgage rates as it indicates how the economy is doing and the potential for wage inflation. It is anticipated that 120k jobs were added last month – we’ll see how the numbers pencil out on Friday when September’s Jobs Report is released. Wednesday is loaded with both the ADP National Employment Report and the release of the FOMC minutes.
Mortgage Rate update the week of September 24, 2012
September 24, 2012 by 1 Comment
We don’t have economic indicators set to be released today however mortgage rates are being influenced once again by the Eurozone. There are more potential issues with Greece that may be revealed by the Troika report after our elections.
Here are some of the economic indicators scheduled to be released this week that may impact mortgage rates:
Tuesday, Sept. 25: S&P/Case-Shiller Home Price Index and Consumer Confidence
Wednesday, Sept. 26: New Home Sales
Thursday, Sept 27: Initial Jobless Claims; Durable Goods Orders; GDP (Gross Domestic Product); Pending Home Sales
TGI Friday, Sept 28: PCE (Personal Consumption Expenditures); Chicago PMI and Consumer Sentiment (UoM)
Mortgage rates continue to be at very low levels, even if you have refinanced a year ago, it may be worth considering a refinance. Today’s home buyers may qualify for “more home” thanks to how low today’s mortgage rates are. If you’re considering buying your first or move up home, an investment property or a vacation home, contact your local mortgage professional to get preapproved.
This morning, for a purchase with a sales price of $500,000 with 20% down payment with 740+ credit scores and taxes and insurance included in the mortgage payment, I’m quoting for 30 year fixed: 3.375% (apr 3.440) with a slight rebate credit towards closing cost or 3.250% (apr 3.340) priced with a small discount.
If you are interested in a mortgage for a home located in Redmond, Renton, Redondo or anywhere in Washington, I’m happy to help you!
Mortgage rate update for the week of September 17, 2012
September 17, 2012 by Leave a Comment
Last week the Fed announced they’re stepping up their purchase of mortgage backed securities to help keep mortgage rates low. While they are doing this, the FHFA (oversees Fannie Mae and Freddie Mac) is increasing the cost of conforming mortgages by increasing the “g-fees”. I’m seeing banks and lenders increasing rates from 0.25 to 0.50 in fee (the cost for a certain rate) and up to 0.625% more with extension fees (when your loan does not close in time).
My advice with mortgage rates tends to be that if you like the rate, you should consider locking it. When it comes to locking rates, do a “gut check”. If you’re more uncomfortable with having a certain rate secured (locked) while rates may improve or if you can stomach not being locked and having mortgage rates increase.
Here is a list of some of the economic indicators scheduled to be released this week:
Monday, Sept. 17: Empire State Index
Wednesday, Sept 19: Building Permits, Housing Starts and Existing Home Sales
Friday, Sept. 21: Initial Jobless Claims and Philadelphia Fed Index
As I write this post (9/17/12 at 8:45am PST) I’m quoting 3.500% for a 30 year fixed based on a loan amount of $400,000 with a sales price of $500,000 (80% loan to value). Seattle area home buyer has credit scores of 740 or higher and the purchase is closing by October 25, 2012. (apr 3.566) with closing cost estimated at $3525 and a principal and interest payment of $1,166.67 (taxes and insurance are not waived).
If you would like me to provide you with a mortgage rate quote on a home located anywhere in Washington, please contact me.
What May Impact Mortgage Rates the Week of September 3, 2012
September 3, 2012 by Leave a Comment
Happy Labor Day! Our office is closed today and will reopen for business as usual on tomorrow, September 4, 2012. Here are a few economic indicators scheduled to be released this week which may impact mortgage rates, including Friday’s Jobs Report.
Tuesday, Sept. 4: ISM Index
Wednesday, Sept. 5: Productivity
Thursday, Sept. 6: ADP National Employment Report, Initial Jobless Claims and ISM Services Index
Friday, Sept. 7: The Jobs Report
On Thursday, we may see mortgage rates impacted by Europe following the Central Bank meeting lead by Mario Draghi. Remember, mortgage rates are based on bonds (mortgage backed securities) and when investors seek the safety of bonds over the potential higher return with stocks, mortgage rates tend to improve and vice versa.
If you are interested in a mortgage rate quote for a purchase or refinance for a home located anywhere in Washington state, please contact me. You can also see live mortgage rates I’m quoting on Twitter.
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