Mortgage Rate Trends - Washington
The last time I posted rate trends, they were at the lowest point in 2008. Shortly after, the went way up. The good news is, they have fallen back some, mostly in the last week.
Jumbo Mortgage Loans
I have been closing several Jumbo Mortgage Loans lately, which is interesting, because the mortgage industry is expecting some big changes to Jumbo financing this month.
Currently, a Jumbo Mortgage in Washington State is simply any mortgage that is greater than $417,000. It is expected that this limit, set by HUD, will increase in the middle of March.
This is expected to have two major outcomes:
- Lenders will be able to more easily sell off their loans that the have been “stuck with” since the subprime mess, thereby increasing thier working capital, and allowing them to make more new loans.
- Homeowners will get better rates on larger loans. Of course there is also talk that lenders will put “rate premiums” in place for loans larger than $417,000, but we’ll have to wait and see on that one.
It is uncertain what the new loan limits will be, but I’ve heard speculation that it will be around $550,000 in Washington State.
I’ll post more as new information is released.
Mortgage Rates and the Fed
It has been an interesting 2008 as far as mortgage rates are concerned. Many of my clients keep asking if rates have gone down due to the recent rate cuts, but unfortunatley, mortgage rates seem to be creeping up. I found an interesting article the provides some good information as to why mortgage rates seem to be climbing, even after the feds sharp rate cuts several weeks ago. Read on:
Mortgage Rates are Still Falling.
I’ve been waiting for some interesting news regarding the mortgage market, but it is pretty much the same old stuff (sub-prime mess, bank losses, etc.).
The only thing I can think of worth writing about is the fact that rates have continued to drop in 2008. Most rates sheets I get from lenders show 30 year fixed rates well under 6.00% and 15 year fixed rates getting very close to 5.00%. If you were thinking about refinancing, now may be a good time.
Washington State Mortgage Licensing Fallout
Here is an interesting article regarding the licensing status of loan originators in Washington State:
Seattle Times Mortgage Licensing Article
Be sure your mortgage broker / loan originator has a valid license. You can check at the Washington State DFI site: