Seattle Mortgage Rates & News For The Week of March 22nd

As we get closer and closer to the end of the Federal Reserve’s Mortgage Backed Security Purchase Program on March 31st the going sentiment has been that mortgage rates will go up.  Unfortunately there has been activity in the market this week which has already put rates on the rise.  It started on Tuesday with Existing Home Sales figures which beat market expectations, despite a drop from the figures of the previous month.  Wednesday saw Durable Goods Orders higher than expectations which is another signal of economic improvement (and bad for mortgage interest rates).   On Wednesday “par” mortgage rates had moved up to 4.875% from their starting point of 4.75% at the beginning of the week.  To secure a par interest rate you must have a FICO credit score of 720 or higher, a loan to value at 80% or less and pay all closing costs including an estimated one point loan origination/discount/broker fee.    Thursday we added to the mix Initial Jobless Claim figures that were lower than expectations keeping the “positive” economic outlook brewing.  This meant more mortgage rate increases and in some cases lenders I work with are publishing rate changes this afternoon with ”par” rates at 5.0%!  

We are certainly in a tumultous period for mortgage interest rates and that will likely continue next week.  As we near the end of a mortgage market supported by the Fed next Wednesday we’ll transition into one dominated by investors who will likely want higher yields/rates for loans.  If you are a borrower planning to close on a purchase or refinance in the upcoming month, I’d highly recommend locking in your rate before April starts as it seems to be increasingly likely that par rates will be headed towards the 5′s . 

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 EXP there at www.tacomapowersearch.com