Will this week bring tricks or treats with mortgage rates? The stage is set to be another volatile week for mortgage rates with scheduled economic events/indicators. The Fed is expected to retire QE3 this week, in which they were buying bonds and treasuries to keep mortgage interest rates at artificial low levels. In addition, the economic issues taking place in Europe and other uncertainties in the world, just adds to the drama we may see play out with mortgage rates.
What May Impact Mortgage Rates this Week: October 27, 2014
October 27, 2014 by 1 Comment
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.
Mortgage rate update for the week of February 25, 2013
February 25, 2013 by Leave a Comment
This week is packed with economic indicators that may impact the direction of mortgage interest rates. Mortgage rates have been slowly inching higher since the end of last year. Rates are still very low and you can still get a 30 year in the 3’s – the rate just cost more than it did a month ago.
Here are a few of the economic indicators scheduled to be released this week:
Tuesday, February 26: S&P/Case-Shiller Home Price Index, New Home Sales and Consumer Confidence
Wednesday, February 27: Durable Goods Orders and Pending Home Sales
Thursday, February 28: Initial Jobless Claims, GDP – Gross Domestic Product and Chicago PMI
Friday, March 1: Personal Consumption Expenditures and Core PCE, ISM Index and Consumer Sentiment Index (UoM)
Tomorrow, Fed Chairman Ben Bernanke will be in front of Congress to begin his two day testimony on monetary policy. In addition, $85 billion in automatic budget cuts are set to go into effect on Friday unless Congress takes action.
Remember, mortgage rates are based on mortgage backed securities (bonds) and when stocks are performing, mortgage rates tend to rise. This is because investors will trade the safety of bonds for the possible higher return available from stocks.
The only way to secure today’s mortgage rate is by locking it! You can see examples of “live” mortgage rates I’m quoting by following me on Twitter @mortgageporter or Facebook/WashingtonMortgagePro.
If I can help you with your refinance or home purchase on property located anywhere in Washington state, please contact me.
