Wow, March 1st is already here and the countdown has begun to the Federal Reserve’s exit from mortgage backed securities purchasing at the end of this month.   We ended last week with some pretty good rates and things have continued to be positive for mortgage rates this week as well.   The data this week has been of light impact although we’ve seen rates improve steadily throughout the week with figures in the reports showing DEFLATION signals (Unit Labor Costs, Factory Orders).   As of today well qualified buyers should have no problem …

Mortgage rates have risen over the beginning of 2010 and are expected to climb significantly after the Federal Reserve stops purchasing mortgage backed securities in March.  Additionally any improvement to the overall economy will push rates higher as money moves out of mortgage bonds and into stocks.  A couple years ago when the economy was at full steam 30 Year Fixed loan rates were in the upper 5 and low 6% range.   So the question that all home buyers need to ask is how will a rise in mortgage rates affect their purchasing power.  While the exact numbers vary based upon …

Last week saw mortgage rates reach some of the highest levels we’ve seen so far this year.  With the homebuyer’s tax credit still around for the next couple months it’s on most buyers mind whether they’ll be able to get a rate in the upper 4’s or mid 5’s for their purchase.  The real estate market is showing some signs of recovery with housing starts exceeding forecasts, growing 590,000 in January, a 2.8% increase over December’s 560,000.  Building permits were very close to market expectations as they came in at 620,000 in January …

It’s been my goal to keep everyone reading our blog updated each week with what’s happening in the mortgage industry.  This post is a bit later in the week than I’d like, but it will allow me to summarize what’s taken place over the last several days.   Mortgage rates have risen as the week has gone by with “par” rates now hovering between 4.875% and 5% for 30 Year Fixed loans.   So why did they rise?
The rate increases really got going on Wednesday, when the FOMC (Federal Open Market Committe) of the …

Interest rates are already on the rise in 2010 and the expectation is that will not only continue but potentially explode after the Federal Reserve stops buying mortgage backed securities in March.   No matter what is happening with rates on a daily or weekly basis it’s always important to know some tips on how to get a lower mortgage rate.  In order for this  to make sense let me first give you a basic idea of how the mortgage industry works and how compensation is earned. 
On a daily basis mortgage originators, …

Freddie Mac reported last Thursday that average rates for a 30 Year Fixed loan had rose to 5.1% from 4.9% the week prior.  Although, we finished out the first week in February with rates/pricing Friday morning at the best we’ve seen all year.   By the end of Friday, the stock market rallied and the great rates that we started the day with were being re-priced by many lenders.    Monday followed Friday afternoon’s pricing and we saw higher rates and prices for the “par” rates being offered.  “Par” interest rates are those that neither cost …

Earlier in the week I mentioned that the Employment Report due out on Friday would have an impact on mortgage rates.  As the week went on we saw gradual improvement in the pricing with 4.75% for a 30 Year Fixed becoming more and more available for less cost.   The stock market tumbled on Thursday and continued to fall on Friday morning despite coming back a bit in late day trading.  Thursday we saw Jobless Claim numbers that were higher than expected and Friday had Non-Farm Payroll employment numbers lower than expected.  Despite the overall unemployment rate …

I was just asked this week how is the Real Estate Market in King County since I mentioned earlier about Snohomish County. Well here is information which was requested about King County. Northwest Multiple Listing Service (MLS) reported as following statistics for Dec 2009. Jan 2010 stats will be published in the coming weeks. We still got 21 months of inventory in King County while Snohomish County got 19 months of inventory of homes for sale.

UNITS
ACTIVE

PENDING

SOLD

DEC 09 UNITS
6,918

1,413

1462

DEC 08 UNITS
8,707

911

929

Total Unit +/-
-1789

502
…

The end of January saw mortgage rates holding fairly steady within a small range throughout the week.  The average for a 30 Year Fixed Conventional loan as reported by Freddie Mac dropped slightly to 4.98% from 4.99% the previous week.  What is somewhat surprising is that the rates held steady amidst a week that had several economic reports that came out with numbers that were more negative than what the market expected. 

Existing Home Sales = Market Expected 5.9M – Actual was 5.45M
New Home Sales = Market Expected 366K  – Acutal was …

8. GET INSURANCE
No one would drive a car without insurance, so it figures that no homeowner should be without insurance. The essential idea behind various forms of property and real estate insurance is to protect owners in the event of catastrophe. If something goes wrong, insurance can be the bargain of a lifetime.
What kind and how much?
There are various forms of insurance associated with home ownership, including these major types:
Title insurance: Purchased with a one-time fee at closing, title insurance protects owners in the event that title to the property …