Seattle Mortgage rates moved higher last week as the Federal Reserve’s Federal Open Market Committee suggested economic recovery may be closer than it originally expected, and that inflation may be a near-term economic concern.
Although the FOMC voted to leave the Fed Funds Rate unchanged in its current range near 0.000 percent, its published comments sparked a broad-based mortgage bond selloff.
Conforming mortgage rates throughout Washingon, Oregon and nationwide rose sharply post-FOMC, climbing by as much as 0.375%.
If you’ve been shopping for a mortgage rate, the run-up was both untimely and unwelcome.
According to Freddie Mac’s weekly mortgage rate survey, for most of the year, conforming 30-year fixed rate mortgage rates had remained within a tight range near 3.90 percent for mortgage applicants willing to pay an accompanying 0.8 discount points.
This week, though, Freddie Mac is expected to report average 30-year fixed rate mortgage rates well north of four percent. It would mark the highest level for the benchmark mortgage rate since mid-December of last year.
There will be a lot more for rate shoppers to watch this week, too. There is a slew of housing data set for release and the heavily-anticipated HARP 2.0 Refinance program “goes live” nationwide.
HARP is a government-led refinance program meant to help underwater homeowners refinance their Fannie Mae- or Freddie Mac-backed mortgages into new loans at today’s low rates.
The program was first launched in 2009 and helped roughly one million U.S. homeowners. HARP’s newest iteration, though, provides for a more lenient underwriting process that is expected to open the program to an additional 6 million homeowners or more.
Mortgage rates may rise this week as a result of HARP-based loan volume. It may also rise on strength in housing — there are four data points due for release :
- Monday : Housing Market Index
- Tuesday : Housing Starts
- Wednesday : Existing Home Sales
- Friday : New Home Sales
As in most weeks, it’s less risky to lock a mortgage rate than to float one. Mortgage rates have much room to climb but very little room to fall. Call Sammamish Mortgage at 425-401-8787 to speak with an experience loan offer or visit our website at www.sammamishmortgage.com for information on rates as well as HARP 2.0.