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his week is packed full of economic data that may dramatically impact mortgage rates. Not only do we have the results of the Fed meeting on Wednesday, we wind up the week with the Jobs Report on Friday. I anticipate this will be another volatile week for mortgage interest rates.
What may impact mortgage rates this week: July 29, 2013
July 29, 2013 by Leave a Comment
What may impact mortgage rates this week: July 22, 2013
July 22, 2013 by Leave a Comment
This week’s calendar is looking a little light as far as economic indicators that are scheduled to be released. Mortgage rates have been improving following Ben Bernanke’s dovish comments to Congress last week.
Mortgage Interest Rate Locks 101: UPDATED
July 18, 2013 by 2 Comments
EDITORS NOTE: One of the joys of writing a mortgage blog is that guidelines and procedures change…and change often. This gives me a great opportunity to provide you with an updated post. With HUD’s creation of the 2010 Good Faith Estimate, a lot of the information in the original post is no longer relevant (relating to the GFE) from the original article I wrote on locking back in 2007. With that said, here’s my updated post…we’ll see if we need to revise this again once CFPB issues their version of the Good Faith Estimate!
I love it when I’m asked an excellent question from a potential client. This person is still shopping for his next home and who the lender will be to provide financing. At this point, I have provided several good faith estimates and a total costs analysis to compare possible scenarios side by side along with how the mortgages may be working for him in 5 and 10 years.
What May Impact Mortgage Rates this Week: July 1, 2013
July 1, 2013 by Leave a Comment
This is a short week packed full of economic data that may impact already turbulent mortgage rates. It may look like a light week – watch for Friday’s Jobs Report. The bond and stock markets will close early Wednesday and reopen on Friday following the 4th of July holiday.
Monday, July 1: ISM Index
Wednesday, July 3: Initial Jobless Class and ISM Services Index
Thursday, July 4th: HAPPY INDEPENDENCE DAY
Friday, July 5: The Jobs Report
If you would like me to provide you with a rate quote for your purchase or refinance of a home located anywhere in Washington state, where I’m licensed, please click here.
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.
Why is the Jobs Report so important to mortgage rates?
May 3, 2013 by 1 Comment
Typically 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.
Mortgage rate update for the week of March 11, 2013
March 11, 2013 by Leave a Comment
The strong Jobs Report on Friday caused mortgage rates to trend higher. This morning rates are still at that level. Please keep in mind that although I talk about mortgage rates been higher – they’re still very low. However if you’ve been pricing mortgage rates over the last two months, you’ll notice that the price (discount) for the same rate you’ve been quoted, cost more.
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!
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