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.

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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

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Give yourself a raise: Refinance!

October 12, 2012 by Leave a Comment

About three years ago, I helped a couple buy their first home. They were my first clients to lock in at 4.500%. I remember sitting across the table from them at a coffee shop in West Seattle and telling them that they would probably never need my services again since their rate was so low. I was wrong.

We are refinancing their mortgage of $359,000 into another 30 year fixed rate at 3.375% (apr 3.544) with net closing cost of $1145.  They are reducing their monthly mortgage payment by $418! That’s a significant amount of savings to put back into their household to pay off revolving debt, build savings or retirement or help fund a college account.

They could even take that $418 and apply it towards additional principal, making the same payment they have been for the past three years while whittling seven years off of their new mortgage. This would save them $67,000 over the life of the loan.

My point is that mortgage rates are extremely low. Even if your current rate is 4.5%, it may very well make sense to refinance.

If your home is located in Washington state and you would like me to provide you with a written rate quote, click here.

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