Seattle Real Estate Mortgage Rates Today 6/1/11
Seattle Real Estate Mortgage Rates Today 6/1/11: Dow Jones DOWN triple digits on gloomy ADP Payroll report, investors shift to bonds and Mortgage Rates are BENEFITTING! Today bonds have broken through a tough ceiling of resistance firmly, BUT interestingly Lenders have not adjusted mortgage rates to match. In fact mortgage rates were lower on Thursday and Friday of last week than they are today even with the bond market sharply lower. Mortgage Backed Securities are trading a the best levels of 2011 which should transition to pressure rates lower. We have already seen many lenders improve today for the better. It is almost as if the market has paused to see if the sell off in Wall Street will hold or if it will regain later in the day.
Regardless we will continue to stand firm that timing is everything. Here is the big question that media continues to beat to death. The double dip in housing. Where is the bottom. We were in a industry and economic forecast in 2007 in the midst of the financial meltdown. A chief economist for a leading financial firm presented a slide show of the housing market. Because of all of the Adjustable Rate Mortgage extended in the housing boom, HE CALLED IT. Yes we mean called it! At that time he predicted that housing could not truly recover until a majority of the Adjustable Rate Mortgages terms expired which put us right where we are today! His direct statement was this, until the banks are able to realize where the portfolio of Adjustable Rate Mortgages and Negative Amortization Loans are fully matured the market cannot see a true bottom. Now the inventory is clear are we at the bottom. It is VERY interesting that every expert analyst under their breathe in an interview states the supply and demand theory. This ties directly to the rental market and buying a home. When a buyer is able to put 20% down on a home and the payment is below a monthly rental price the market has bottomed. In many areas we are now seeing this.
As conflicting as this may seem with what media is presenting, investors are now starting to come back to buy more rentals. #1 because of a long housing recovery which will help landlords profit, but also from lending being so tight in guidelines. BUT! Wait! Lending guidelines are beginning to loosen and in FACT mortgage insurance companies are opening back up which helps to ease lending guidelines! Yes, that is correct, lending guidelines are easing as we are beginning to see the low down payment options return to the market where a conventional loan is better than FHA. Jumbo financing is easing with higher loan amounts and COMPETITIVE pricing which we have not seen since 2007. This is the turn in the market, debateable yes, but when lending is easing and the rent to buy ratio is showing proof, we truly could not be at the bottom of the market.
Regardless of opinion in hindsight it will always be about timing so that when you are in your home at dinner with friends and family you can say that your interest rate is below 5.00% and you purchased your home at a 20% or more discount on the market. That in itself as a statement sounds like a great story to tell.
Timing is everything just as location of the home is critical. Timing in securing an interest rate, BEST rate, is working with a mortgage professional who has their pulse on the market and when best to advise and educate their clients when timing is right. Along with this key knowledge is to be on top of all of the lending and underwriting changes which seem to almost happen daily. We at the Mortgage Reel are Licensed Washington Loan Originators, serving clients with transparency, knowledge and most importantly keeping your goals in mind. How can we assist you today?
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