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What’s Ahead For Mortgage Rates This Week – December 19, 2202

December 19, 2022 by Joanne Ahn

What's Ahead For Mortgage Rates This Week - December 19, 2202Last week’s economic reporting included readings on inflation, retail sales, and the Federal Reserve’s Federal Open Market Committee meeting.  Fed Chair Jerome  Powell held his scheduled post-meeting press conference and weekly readings on mortgage rates and jobless claims were also released.

Federal Reserve Raises Target Interest Rate Range

The Federal Reserve’s Federal Open Market Committee announced its decision to raise the Fed’s target interest rate range to 4.25 to 4.50 percent from its previous range of 3.75 to 4.00 percent.

Fed Chair Jerome Powell said in remarks made during his scheduled press conference, “We’re going into next year with higher inflation than we thought.” Seven Fed officials predicted rising interest rates with the Fed’s interest rate range potentially reaching 5.75 percent. Analysts said that the Fed’s position of controlling inflation at any cost could result in a recession. Chair Powell said it was impossible to predict if a recession would occur and how deep it might go and how long it could last. He repeated the Fed’s commitment to controlling high inflation.

Mortgage Rates, Jobless Claims  Fall

Freddie Mac reported lower fixed mortgage rates last week as the average rate for 30-year fixed-rate mortgages dropped by two basis points to 6.31 percent. The average rate for 15-year fixed-rate mortgages dropped by 13 basis points to 5.54 percent.

Initial jobless claims fell to 211,000 first-time claims filed as compared to the prior week’s reading of 231,000 new jobless claims filed. Continuing jobless claims were reported as unchanged from the prior week with 167,000 ongoing unemployment claims filed.

The Commerce Department reported lower retail sales in November than in October. Retail sales decreased by -0.6 percent in November, which surpassed analysts’ estimates of -0.3 percent. Lower retail sales could suggest an impending recession as consumers hold back on paying rapidly rising prices for non-essential goods and services.

What’s Ahead

This week’s scheduled economic reporting includes readings from the National Association of Home Builders on U.S. housing markets and Commerce Department data on building permits issued and housing starts. Reports on sales of new and previously-owned homes and weekly readings on mortgage rates and jobless claims will also be released.

Filed Under: Financial Reports Tagged With: Interest Rates, Jobless Claims, Mortgage Rates

Why Banks Don’t Always Give The Best Interest Rate

July 14, 2022 by Joanne Ahn

Why Banks Don't Always Give The Best Interest RateIf you want to purchase a house, you will probably have to take out a mortgage. There are only a few people who have enough cash to purchase a house outright, so most will go to the bank for a loan. How do you know if the bank is giving you the best possible interest rate? Unfortunately, the bank does not always give you the best interest rate because the bank is looking for a way to make money. If they can get you to accept a higher interest rate, they will make more money on your home loan. What are some of the factors that dictate interest rates on loans, and how can you say money?

Bank Rates Are Dictated By Investors

In a lot of cases, mortgage rates are not necessarily dictated by banks, but they are dictated by investors. Many banks want to remove the risk of someone defaulting on their home loan, so they will sell the debt to an investor. This is a way for the banks to free up capital they can use to invest in other projects. Sometimes, the mortgage rates are dictated by the amount of money investors are willing to pay for this type of debt.

Interest Rates Are Always Forward-Looking

In other cases, banks will charge a higher interest rate because they are worried that rates will rise in the future. Essentially, the pricing on home loans right now is dictated by what banks think interest rates will be in the future. If the bank thinks that interest rates will go up, then it might raise interest rates now to hedge its risk. 

How You Can Get A Better Interest Rate

There are a few ways you can get the bank to give you a better interest rate. First, make sure your credit report is in order. Maximize your credit score to get a better interest rate. Then, make sure you have enough money to put down. The more money you put down, the lower the interest rate you will get. Finally, ask about discount points. You might be able to pay some of the interest upfront in exchange for a lower interest rate over the life of the loan. 

 

Filed Under: Mortgage Tagged With: Bank Loans, Interest Rates, Mortgage

3 Reasons You Should Trust in a Mortgage Advisor Instead of Trying to Predict Rates

June 16, 2022 by Joanne Ahn

3 Reasons You Should Trust in a Mortgage Advisor Instead of Trying to Predict RatesIf the time has come to purchase a home and you’ve been perusing the real estate market, it’s possible you’ve also been considering the mortgage options that might work best for you. In the event that you’re already spending a lot of time looking at homes and trying to sell your own, here are a few reasons you may want to leave your mortgage considerations to a professional.

Qualifications You Can Count On

If you’re new to the world of home purchasing and have concerns about learning the ropes on your own, a mortgage advisor can be a great way to navigate the market and get the information you need without having to do all of the legwork. Because a mortgage advisor has to have the necessary qualifications to give you advice, they’ll be able to guide you through available options so you can find the product that is best suited for your financial situation.

A Knowledgeable Expert On Your Side

Between putting in offers on a home and dealing with lenders, it can often feel like you’re between a rock and a hard place, and getting squeezed financially. However, the ideal mortgage advisor will be someone who is there solely to assist you and provide you with viable options. Instead of a very specific set of options provided by the bank, an advisor will be able to identify products your lender might not suggest, which means you’ll have more options and a representative who will be able to recommend the best ones for you.

The Inside Scoop On The Industry

It’s the job of a mortgage advisor to be on top of the market, have a comprehensive knowledge of the products out there and be familiar with the lenders, so this means less research and a lot more expertise for you when it comes to any final mortgage decisions. Not only will they have the know-how in the industry you’re heading into, they’ll be aware of the information the lender requires and may be able to score you a better deal when the time to make a decision comes.

Finding the ideal lender for your mortgage can be a struggle in times where there are so many small details to deal with, but a mortgage advisor can work to simplify the process. If you’ll soon be applying for a mortgage and are considering your lender options, you may want to contact one of your local mortgage professionals for more information.

Filed Under: Home Mortgage Tips Tagged With: Home Mortgage Tips, Interest Rates, Mortgages

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Joanne Ahn

Joanne Ahn


Mortgage Broker
Call (415) 999-2439
joanne.houseofmortgage@gmail.com

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