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 March 4, 2013

March 4, 2013 by Leave a Comment

This week’s economic calender would be considered a little on the light side if not for Friday’s Jobs Report. Here are some of the economic indicators scheduled to be released this week.

Tuesday, March 5: ISM Services Index

Wednesday, March 6: ADP National Employment Report and the Beige Book

Thursday, March 7: Initial Jobless Claims and Productivity

Friday, March 8: THE JOBS REPORT

Remember, signs of inflation tend to drive mortgage rates higher. You may also notice that when the stock markets are doing well, mortgage rates tend to rise as investors will trade the safety of bonds (like mortgage backed securities) for the potential greater return of stocks.

Mortgage rates are still very low, however they have been trending higher over the last several weeks.

If I can provide you with a rate quote for a home purchase or refinance located anywhere in Washington state, please click here.

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Mortgage rate update for the week of February 18, 2013

February 18, 2013 by Leave a Comment

The stock and bond markets are closed today in observance of President’s Day. Here are a few of the economic indicators scheduled to be released this week.

Wed. February 20: Building Permits; Producer Price Index (PPI); Housing Starts; FOMC Minutes released

Thurs. February 21: Consumer Price Index (CPI); Initial Jobless Claims; Philadelphia Fed Index; Existing Home Sales

Watch for signs of inflation from the PPI or CPI, which tends to drive mortgage rates higher. Wall Street will also be paying close attention to the FOMC minutes.

Happy President’s Day!

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Mortgage rate update for the week of February 11, 2013

February 11, 2013 by Leave a Comment

mortgageporter-economyAlthough still very low, mortgage rates have been trending higher. This morning I’m updating a quote for a Seattle home owner who is considering refinancing. The same rate I quoted her a month ago today at “par” (no discount points) will now cost a full discount point or is 0.125 – 0.25% higher in interest rate with similar pricing. I have more on current mortgage rates below.

As the economy improves and the stock market rallies, mortgage rates tend to rise. This is because investors will trade the safety of bonds (like mortgage backed securities) for the potential better return with stocks.

[Read more…]

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Mortgage Update for the Week of December 12, 2010

December 10, 2012 by Leave a Comment

iStock-000020911287XSmallMortgage rates continue to be very low levels. Freddie Mac has been reporting average interest rates for 30 year at under 4% for the last year with 15 year fixed rates being under 3% for the last six months.

While the Fed works at keeping rates at artificially low levels, Congress is considering increasing the guarantee fees to new conventional mortgages to help fund programs that have nothing to do with Fannie Mae, Freddie Mac or even the housing recovery. The guarantee fees (aka g-fees) are factored into the pricing of a mortgage rate. FHA mortgage loans are also becoming more expensive in 2013 with the increase of mortgage insurance premiums.

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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.

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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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