Seattle Mortgage Rate News For the Week of February 8th

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 to get nor pay because they are higher than the market average.  For a more detailed explanation please feel free to ask me about how the mortgage business/market works.

So what’s on tap for this week?  Monday was a fairly uneventful day but the rest of the week should hold more volatility.  Tuesday has a Treasury Auction of 3 Year Notes and Wednesday has an auction of the important 10 Year Notes.  Both of which could potentially have an impact on mortgage rates.  In the wake of treasury auctions, volatility in the mortgage market can typically be quite high.  That means there’s the potential for mortgage rates/prices to get worse over the next couple days.  On Thursday there are economic reports due out for Retail Sales and Jobless Claims.  Economic reports can impact the mortgage market if the details are different than what the market expects.  If the reports show the economy improving and money flows into stocks from the bond market then we see mortgage rates rise.  Given what’s taken place on Friday afternoon and the start of this week I’d expect that we will see slight increases in mortgage rates/prices as this week goes on unless we get some surprisingly negative economic reports.  Most of the quotes we’re currently making for 30 Year Fixed Loans are at 4.75%.  If you’re a borrower considering “locking-in” your rate, I’d lean towards doing so if you’re happy with the rates/pricing you’re seeing.  

Michael Pollock is an Accredited Buyers Representative, member of the Seattle King County Association of Realtors and Licensed Loan Originator in Washington.  He also works with clients in the Tacoma/Pierce County area – visit us at www.tacomapowersearch.com