Mortgage rates have been moving higher causing some home buyers and rate shoppers a bit of surprise. Mortgage rates have been trending up with hints of QE3 and the Fed’s bond buying program, which has kept mortgage rates at artificial lows, may be wrapping up soon. Freddie Mac reports that the 30 year fixed is at 3.91% when paying 0.7 points and if not points are paid, the rate is 4.09%. Keep in mind that the rates Freddie has posted today are from last week and rates have continued to nudge higher.
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.
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 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.
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!
