What's Ahead For Mortgage Rates This Week- August 5, 2013

The past week brought encouraging economic news from several sources.

The FOMC statement indicated that the Federal Reserve has not set a date for rolling back its quantitative easing program and ADP reported more private sector jobs added than expected.

While weekly jobless claims were fewer than expected, the national unemployment rate remained elevated:

Monday: Pending Home Sales: The National Association of REALTORS reported that sales contracts fell in June due to rising mortgage rates and a tight inventory of available homes.

Tuesday: The S&P Case-Shiller Home Price Indices showed that national home prices increased by 12.2 percent annually.

All 20 cities used in the 10 and 20 city home price indices posted gains in average home prices. Average U.S. home prices remained approximately 25 percent below their peak in 2006.

Consumer confidence dropped in July to a reading of 80.3 as compared to a revised reading of 82.1 in June. Higher mortgage rates and stubbornly high unemployment rates likely contributed to a cooling of consumer enthusiasm.

Wednesday: The Federal Open Market Committee (FOMC) said in its statement that based on its reading of current economic conditions,the committee had not set a date for beginning to reduce the Fed's monthly asset purchase of $85 billion in Treasury securities and MBS.

The program, known as quantitative easing (QE), is intended to keep long-term interest rates including mortgage rates lower.

ADP reported that job growth for private-sector jobs exceeded expectations for July; the adjusted reading of 200,000 for July beat expectations of 185,000 jobs added and also surpassed June's reading of 198,000 new jobs added.

The ADP jobs report is viewed by economists as a preview of the Bureau of Labor Statistics' Non-farm Payrolls and National Unemployment reports, which are collectively known as the "Jobs Report."

Thursday: Weekly jobless claims came in at 326,000. This was lower than expectations and the previous week's reading, both of which were reported at 345,000 jobless claims.

Freddie Mac reported that mortgage rates rose, with the average rate for a 30-year fixed rate mortgage coming in at 4.39 percent as compared to last week's 4.31 percent.

Average rates for a 15-year fixed rate mortgage came in at 3.43 percent over last week's 3.39 percent. The average rate for a 5/1 adjustable rate mortgage was 3.18 percent and two basis points higher than the previous week's 3.16 percent.

Friday: The July Non-farm Payrolls report showed that only 162,000 jobs were added as compared to expectations of 180,000 jobs added and June's reading of 188,000 jobs added. While housing markets are showing strong improvement, high unemployment continues to be a drag on the economy.

The national unemployment rate for July was 7.40 percent and was lower than expectations of 7.50 percent and June's reading of 7.60 percent.

What's Coming Up This Week

This week's economic news includes the Senior Loan Officer Survey set for Monday, the U.S. Trade Deficit and Job Openings reports for June on Tuesday.

On Wednesday, a report on Consumer Credit will be released and the Weekly Jobless Claims will be out Thursday, along with Freddie Mac's mortgage rates report. No mortgage or related news is scheduled for Friday.

Case Shiller Home Price Index Shows Rising Prices For May 2013

The S&P/Case-Shiller Home Price Index (HPI) released Tuesday presented solid evidence that the housing recovery continued during the month of May.

The Case-Shiller 20-City Index showed increasing home prices for all 20 cities.

Highest Year-Over-Year Gains Included Theses Cities:

• San Francisco, CA 24.50 percent
• Las Vegas, NV 23.30 percent
• Phoenix, AZ 20.60 percent
• Atlanta, GA 20.10 percent
• Los Angeles, CA 19.20 percent

In surprising news, Dallas, TX and Denver, CO posted record year-over-year price gains that surpassed their pre-crisis peaks.

Year-over-year home prices in Dallas increased by 7.60 percent and Denver home prices increased by 9.70 percent year-over-year in May.

Home prices grew by 12.20 percent on a year-over year basis in May; this reading fell short of expectations of 12.40 percent, but moved slightly ahead of April's reading of a 12.10 percent year-over year increase.

The Case-Shiller HPI is based on a three-month rolling year-over-year average of home prices in the cities surveyed.

Cities Post Month-To- Month Price Gains 

On a seasonally-adjusted month-to-month basis, home prices rose by 1.00 percent in May as compared to April. Expectations were for a 1.40 percent increase over April's reading, which came in at 1.70 percent.

Top Gains From April To May Were Posted By These Cities:

• San Francisco, CA 4.30 percent
• Chicago, IL 3.70 percent
• Atlanta, GA 3.40 percent
• San Diego, CA 3.10 percent
• Seattle, WA 3.10 percent

Analysts noted that home prices for two metro areas in Florida surpassed year-over-year gains in Washington, D.C.; this illustrates home values shifting geographically.

Miami home prices posted a month-to gain of 2.00 percent and a year-over-year gain of 14.20 percent.

Tampa, FL home prices posted a month-to-month gain of 1.80 percent on a year-over-year gain of 10.90 percent.

Washington, D.C. home prices gained 2.00 percent month-to-month in May, but only gained 6.50 percent year-over-year.

Rising Mortgage Rates Could Slow Price Momentum

It's important to understand that the data in the Case-Shiller HPI lags a couple of months behind current market conditions; the latest numbers were compiled prior to mortgage rates spiking. Economists expect that the impact of higher mortgage rates won't be seen in home prices until fall.

Higher mortgage rates are expected to slow home sales. If the demand for homes falls due to higher mortgage rates, inventories of available homes would expand, which would create competition among home sellers and potentially lead to lower home prices.

For any questions regarding your mortgage rate and buying a home feel free to contact your trusted mortgage professional today.

What's Ahead For Mortgage Rates This Week -- July 29, 2013

Last week brought a mixed bag of economic news, but most notably, average mortgage rates fell.

New home sales surpassed expectations and consumer sentiment rose for July; these readings among others suggest that the economy continued to improve and that consumer confidence in the economy improved as well.

Monday: Existing home sales in June were reported at 5.08 million on a seasonally-adjusted annual basis. While this fell short of expectations of 5.25 million existing homes sold, the expectation was based on the original reading of 5.18 million existing homes sold for May; this was later revised to 5.14 million homes existing homes sold in May.

Tuesday: FHFA reported that May prices for homes with mortgages held by Fannie Mae or Freddie Mac remained consistent with April's reading of a 7.30 percent increase on a seasonally adjusted annual basis. Home prices rose by 0.70 percent in May as compared to April's revised reading of 0.50 percent. 

Wednesday: The U.S. Census Bureau revealed that June sales of new homes came in at 497,000, which surpassed both expectations of 483,000 new homes sold and May's reading of 449,000 new homes sold.

Thursday: Freddie Mac reported that mortgage rates fell last week; the average rate for a 30-year fixed rate mortgage fell by six basis points to 3.31 percent with 0.8 percent in discount points.

The average rate for a 15-year mortgage was 3.39 percent with discount points of 0.8 percent as compared to last week's report of 3.41 percent. Average rates for a 5/1 adjustable rate mortgage dropped by one basis point from 3.17 percent to 3.16 percent; discount points moved from 0.60 percent to 0.70 percent.

In other economic news, June's report for Durable Goods Orders nearly doubled to 4.20 percent over expectations of 2.30 percent.

Friday: Consumer Sentiment for July rose to 85.1 as compared to expectations of 84.0 and June's reading of 83.90 percent. That consumers continued gaining confidence in the economy could indicate that more would-be home buyers will become active homebuyers seeking to buy amidst a short inventory of available homes. 

This Week's Busy Economic Calendar

Readings for several significant economic and housing related indicators will be released this week.

Pending Home Sales are due out today; Tuesday brings the Case-Shiller Home Price Index and the Consumer Confidence Index. Wednesday's news includes the ADP report (useful for tracking private sector job growth) and an FOMC statement after its meeting ends.

Fed Chairman Ben Bernanke is also scheduled to give a press conference Wednesday. As always, any remarks concerning projected changes to the Fed's quantitative easing program (QE) could impact financial markets and mortgage rates. 

On Thursday, construction spending data will be released in addition to Freddie Mac's weekly report on average mortgage rates.

Friday's news includes several employment-related reports. The monthly Non-Farm Payrolls and Unemployment report will be released; collectively these two reports are frequently called the Jobs Report.

Data on personal income and consumer spending will round out the week's economic news.

What Should You To Do In Advance To Prepare For Your Mortgage Application

If you are applying for a mortgage to buy a home, doing your homework in advance before you submit the application means that you will stand a better chance of getting accepted at a desirable mortgage rate.

According to mortgage experts, it is a good idea to gather up all of the needed documents in advance before launching your house hunt, as this will make the application process a lot easier.

The housing burst has resulted in much harder lending standards, which means that it could possible take weeks or sometimes even months to secure a loan.

Here are a few important steps that you should take in advance

Consider What You Can Really Afford

Before you start the entire house hunting and mortgage application process, you should consider what you can really afford to buy.

It might be tempting to buy a house at the upper end of your price range, but consider the fact that it will be more of a struggle to make your mortgage payments and it will take much longer to pay down the mortgage. Assess your finances and be honest with yourself.

Buying a home that is more comfortably within your price range will ensure that you can easily manage your monthly budget over the years.

Save Up A Down Payment

The bank will want to see that you are able to make a down payment of at least 20% of the value of the home.

In order to save up this amount of money, it will be easier if you start in advance and save a small amount every month. The more you can pay for a down payment, the less your mortgage will be and the more money you will save over the length of the loan.

Do Your Research

Take your time to do lots of research in advance and seek out impartial advice on the mortgage market. There are so many options to choose from and a lot to consider, so the more knowledge you have the more prepared you are to make an informed decision.

Consider Your Credit

Before applying for a mortgage loan, you should take a look at your credit report.

Your lender will look at it when you are making an application and they will use it to consider whether or not to offer you the loan and what type of interest rate to give you. If you spot any errors or issues with the credit report, it is a good idea to get them fixed now before you apply.

These are just a few things to consider before applying for a mortgage. To find out more about mortgages or buying a home, contact your trusted mortgage professional today.

What's Ahead For Mortgage Rates This Week - July 22, 2013

Last week's economic news was a mixed bag with retail sales and housing starts coming in lower than expected, but home builder confidence in housing markets increased.

Weekly jobless claims fell, and Fed Chair Ben Bernanke testified before the Senate, saying that falling gold prices were an indication of increasing confidence in the economy, but that it was "way too soon" to say when the Fed's quantitative easing program would be reduced.

Monday: Retail sales for June came in lower than expected at 0.4 percent. Economists estimated a reading of 0.9 percent based on May's reading of 0.5 percent.

Tuesday: June's Consumer Price Index (CPI) came in as expected at 0.5 percent against May's reading of 0.1 percent. The NAHB/Wells Fargo Housing Market Index (HMI) for July gained five points for a reading of 57, which exceeded expectations of a reading of 52. Builders cited a short supply of existing homes and falling materials prices as factors contributing to June's stronger reading.

Wednesday: Housing starts in June fell to a seasonally-adjusted annual rate of 836,000 against expectations of 950,000 and May's revised reading of 928,000. Regional weather and a surplus of unused building permits were seen as contributing to fewer housing starts in June; analysts did not see the dip in housing starts as a sign of softening housing markets.

Thursday: Fed Chair Ben Bernanke testified before the Senate as noted above and was careful to emphasize that economic data received after the last FOMC meeting indicated that it is "way too soon" for the Fed to change its monthly volume of Treasury bonds and MBS purchases. This is good news for mortgage markets, and possibly for mortgage rates, which fell this week.

Freddie Mac reported that average rates for a 30-year fixed rate mortgage fell by 14 basis points to 4.37 percent; average rates for a 15-year fixed rate mortgage fell by 12 basis points to 3.41 percent; these rates include average discount points of 0.7 percent. The average rate for a 5/1 ARM was 3.17 percent with discount points of 0.6 percent. The 5/1 ARM provides an affordable alternative to rising fixed mortgage rates.

Friday: No significant economic news noted.

What's Coming Up

This week's schedule includes Existing Home Sales on Monday; on Tuesday, the FHFA releases its Home Prices report. New Home Sales will be released on Wednesday; Thursday brings weekly jobless claims and the Durable Goods report. The week will finish with the Consumer Sentiment report on Friday.

What's Ahead For Mortgage Rates This Week - July 15, 2013

The Fed's release of the minutes for the June FOMC meeting was the most noteworthy economic event last week; the minutes repeated the Fed's recent statement concerning the wind-down of its current monetary easing policy.

The minutes indicated that about half of meeting participants wanted to end the quantitative easing (QE) policy by year end, while "many others" preferred to end the program in 2014.

This split suggests that days are numbered for the Fed's monthly purchase of $85 billion in Treasury securities and mortgage-backed securities (MBS). The minutes also revealed that the Fed would not be selling off MBS as QE is ended. This would likely prevent additional potential for mortgage rates to increase as demand for bonds would decline when the Fed stops its monthly purchases.

Mortgage Rates Typically Rise When Bond And MBS Prices Fall

U.S. financial markets showed little reaction to the Fed minutes. The Dow Jones Industrial Average saw a quick gain of about 40 points that quickly retreated. The Wall Street Journal interprets the lackluster response to the Fed minutes as investors growing accustomed to the eventual end of the QE program; it's also possible that the markets interpreted the FOMC minutes as "old news," as the minutes contained information included in the Fed statement given after June's FOMC meeting.

The FOMC minutes reported that details of tapering the QE program will be given by Chairman Ben Bernanke during his customary press conference after the Fed presents the FOMC meeting statement. The minutes also asserted that the Fed will closely monitor economic and financial developments as part of their decision-making for ending QE.

The minutes stated that the current Federal Funds rate of 0.00 to 0.25 percent will remain in place for some time after QE is ended.

Mortgage rates rose last week according to Freddie Mac. The average rate for a 30-year fixed rate mortgage moved to 4.51 percent from last week's 4.29 percent. The average rate for a 15-year fixed rate mortgage rose to 3.53 percent from 3.39 percent. Discount points for both types of loans rose from 0.70 percent to 0.80 percent.

Rising mortgage rates suggest that borrowers may soon return to adjustable rate mortgages or hybrids such as the 5/1 adjustable rate mortgage, which was reported at an average rate of 3.26 percent with discount points of 0.70 percent.

What's Coming Up

On Monday, retail sales for June will be released. This is an important indicator for the general economy. Tuesday's news includes NAHB/Wells Fargo Housing Market Index for July.

On Wednesday, Housing Starts for June will be released. Thursday's news includes weekly Jobless Claims and Leading Economic Indicators. No economic news is scheduled for Friday.

FOMC Minutes Reveal Fed May Curb Economic Support Program Before Year End

FOMC Minutes Suggest QE Tapering by Year-End

The minutes for June's meeting of the Federal Open Market Committee (FOMC) suggest that committee members are mostly in agreement that the current quantitative easing program (QE) should begin winding down by year end, but the committee minutes are very clear concerning the committee's intention to monitor inflation and ongoing economic and financial developments before taking action to reduce the current rate of QE.

The Fed currently purchases $85 billion monthly in Treasury securities and mortgage-backed securities (MBS). Investors fear that if the Fed rolls back QE too soon or too fast, it could cause long term interest rates such as mortgage rates to rise faster.

The Fed minutes indicate that factors the Fed will continue monitoring before making changes to QE include:

• Labor market conditions
• Indicators of inflationary pressures
• Readings on financial developments

FOMC members also agreed that the Fed would not sell MBS it has accumulated after the economic support program ceases. When the Fed ceases QE, demand for mortgage-backed securities is expected to fall. If the Fed were to sell off MBS holdings in addition to stopping QE, MBS prices could fall sharply. In general, when MBS prices fall, mortgage rates rise.

The FOMC minutes indicate that the Fed intends to maintain the Federal Funds rate at 0.000 to 0.250 percent "for a considerable time after the monthly asset purchases cease."  To be clear, the minutes do not reveal any specific dates for starting to wind down the program.

Concerns over financial conditions in Europe highlight the Fed's intention to monitor global economic developments were discussed. Potential "spillover" of negative sentiments in response to Europe's economic woes to U.S. financial markets were seen as a potential threat to the U.S. economic recovery.

Committee members found that although the economy showed moderate improvement since its last meeting, the national unemployment rate remains high at 7.60 percent. Members also noted that the numbers of long-term unemployed and those working part time jobs but wanting full time jobs remain higher than average. These conditions traditionally keep consumers from buying homes.

Housing: Upside-Down Mortgages Decreasing

Due to rapid increases in home values, the committee noted that fewer homeowners were under water on their mortgage loans. This is good news as homeowners can rebuild household wealth as their home equity increases. Having home equity also provides homeowners with the flexibility to sell or refinance their homes.

While housing is driving the economic recovery, high unemployment will likely keep the Fed from changing its QE policy in the short term.

Now may be a very good time to take advantage of still historically low mortgage interest rates before they rise. If you have specific questions on purchasing or refinancing your home mortgage loan and how these changes may affect you, please contact your trusted mortgage professional today.

What's Ahead For Mortgage Rates This Week - July 8, 2013

Last week saw a relatively quiet week due to the 4th of July holiday, but there were some housing-related developments:

Monday: The Department of Commerce reported that overall construction spending increased by 0.50 percent in May to a seasonally adjusted annual rate of $874.9 billion. Residential construction grew by 1.20 percent, and May 2012 construction spending was 5.40 percent higher than in May 2012.

More spending in residential construction can indicate builder confidence in housing markets; added construction could help ease low inventories of available homes.

Tuesday: CoreLogic reported that May national home prices increased by 12.20 percent over May 2012, and grew by 2.60 percent in May including sales of distressed properties. Excluding distressed properties, home sales rose by 2.30 percent in May for a year-over-year increase of 11.60 percent.

States hardest hit in the economic downturn are showing good recovery; Nevada home prices rose by 26 percent year-over-year. While double-digit increases in home prices are good news, economists note that home prices remain approximately 20 percent below their peak in 2006.

Employment Data: More Jobs, Less Unemployment

Employment data are important for housing markets; employment is closely tied to home buyers' ability to qualify for mortgage loans. Last week ended with several important jobs related reports:

Wednesday: ADP reported that 188,000 private-sector jobs were added in June for the highest increase in four months. This number surpassed expectations of 160,000 new jobs and May's revised figure of 134,000 jobs added.

Freddie Mac's mortgage rates survey had some good news as average rates for a 30-year fixed rate mortgage fell from 4.46 percent to 4.29 percent with discount points also falling from 0.80 to 0.70 percent. Average rates for a 15-year mortgage fell from 3.50 percent to 3.39 percent, with discount points moving from 0.80 percent to 0.70percent.

Friday: The Labor Department released Non-farm Payrolls and the national Unemployment Rate for June. Non-farm matched May's level of 195,000 jobs added, which surpassed expectations of 155,000 jobs added. The unemployment rate remains at 7.60 percent, just over expectations of 7.50 percent.

The Federal Reserve has cited a benchmark unemployment rate of 6.50 percent as a criterion for raising the federal funds rate and reducing its current quantitative easing policy; this news may help slow mortgage rates as the Fed isn't likely to modify its programs based on the current unemployment rate.

Looking Ahead

This week's economic news includes today's report on consumer credit. Tuesday brings Job Openings for May, and Wednesday brings the minutes from the recent FOMC meeting. The minutes should clarify exactly what the committee discussed concerning quantitative easing and their plans for modifying it.

Thursday, Freddie Mac will release weekly mortgage rates. The federal government will release weekly jobless claims and will update the federal budget. The week's economic news will conclude with release of the Producer Price Index (PPI) and Core PPI for June, along with Consumer Sentiment for July.

What's Ahead For Mortgage Rates This Week - June 17, 2013

Last week's news was relatively quiet with no data significant to the mortgage lending released until Wednesday, when the federal government announced a $138 billion budget deficit for May.

According to the U.S. Treasury this figure is 11 percent higher than for May of 2012, but the federal budget is expected to come in with less than a -$1 trillion deficit for the 2013 fiscal year, which runs from October to September.

The Treasury estimates that the 2013 budget deficit will come in at approximately -$642 billion, well below fiscal 2012's deficit of -$1.1 trillion. The federal budget has been running deficits over -$1 trillion since 2008.

Employment Market Continues To Strengthen

On Thursday, the Weekly Jobless Claims report brought good news; jobless claims fell from the prior week's 346,000 jobless claims to 334,000 jobless claims. This was also less than expectations of 350,000 jobless claims. As more workers gain steady employment, this will enable more would-be home buyers to become active buyers.

May Retail sales also showed slight improvement as they moved from 0.60 percent from April's 0.10 percent.

According to Freddie Mac's Primary Mortgage Market Survey (PMMS), the average mortgage rate for a 30year fixed rate mortgage rose from last week's 3.91 percent to 3.98 percent with discount points unchanged at 0.70 percent. The average rate for a 15-year fixed rate mortgage rose from last week's 3.03 percent to 3.10 percent with discount points holding at 0.70 percent.

What's Coming Up This Week

Next week's economic news schedule has a number of reports due including Wednesday's FOMC statement and Fed Chair Ben Bernanke's press conference. This meeting and press conference are significant as any move by the Fed to reduce or cease its current quantitative easing (QE) program could cause mortgage rates to rise further.

Monday's news includes the Home Builders Index for June. Tuesday brings the Consumer Price Index (CPI) for May and the Core CPI, also for May. The indices measure prices paid by consumers for goods and services; the Core CPI eliminates the volatile food and energy sectors included in the CPI. Rising or falling consumer costs influence how much discretionary income consumers have for saving toward buying a home.

No news is scheduled for Wednesday other than the FOMC statement and press conference.

Thursday brings the Existing Home Sales Report, Weekly Jobs Report, Freddie Mac PMMS and Leading Indicators. These reports are expected to provide news about U.S. housing markets, mortgage rates and economic influences impacting consumers.

There is no economic news scheduled for Friday.

What's Ahead For Mortgage Rates This Week -- June 10, 2013

Last week's economic reports provided a mixed bag of results. On Monday, the Department of Commerce reported that construction spending increased by 0.40 percent in April and fell shy of the expected reading of 1.0 percent, but exceeded the March reading of -0.80 percent.

Home Prices Increase Fastest Since 2006

On Tuesday, CoreLogic released its Home Prices reported that the national average home price had increased by 12.10 percent year-over-year in April. The comparable year-over-year reading for April 2012 was 11.00 percent. This represents the fastest pace of home price increases since 2006.

The national average home price expanded by 3.20 percent as compared to March,  but average prices grew faster in the West, which is experiencing a pronounced lack of available homes and developed land for building.

New Jobs Created Showing Improvement Over April Revisions 

ADP released its private-sector Payrolls Report for May on Wednesday; 135,000 new private sector jobs were added as compared to investor expectations of 170,000 jobs added in May. The May reading surpassed April's downwardly-revised reading of private-sector jobs added.

Friday's Jobs Report, issued by the Bureau of Labor Statistics, consists of the Non-Farm Payrolls Report and the National Unemployment Rate. Non-Farm Payrolls added 175,000 public and private sector jobs and surpassed both the consensus reading of 164,000 new jobs and the prior week's reading of 149,000 jobs added. The National Unemployment Rate ticked up from 7.50 to 7.60 percent. The Department of Labor attributes this increase to more people joining or returning to the labor market.

Investors Watching Fed Mortgage Backed Security Buying Activity Closely

The Federal Reserve Beige Book Report was also released Wednesday. It contained no surprises and noted modest to moderate economic growth in 11 of 12 Federal Reserve Districts. The Dallas Federal Reserve District reported strong growth, but investors will be watching next week's Federal Open Market Committee (FOMC) meeting closely for proposed changes to the Fed's current policy of buying bonds and mortgage backed securities (MBS) with the goal of keeping long term interest rates lower.

Thursday's Primary Mortgage Market Survey brought disquieting news of rising mortgage rates. Freddie Mac reported that the average rate for a 30-year fixed rate mortgage had risen from the prior week's rate of 3.81 percent to 3.91 percent. Discount points fell slightly from 0.80 percent to 0.70 percent with buyers paying all of their closing costs. The average rate for a 15-year fixed rate mortgage rose from last week's average rate of 2.98 percent to 3.03 percent with discount rates remaining the same at 0.70 percent for buyers paying all of their closing costs.

What's Ahead for Next Week

There is no news scheduled for release on Monday. The rest of the week's calendar includes the NFIB Small Business Index on Tuesday and the Federal Budget for May on Wednesday. Thursday's scheduled releases include Weekly Jobless Claims, Average weekly mortgage rates as reported by Freddie Mac, and Retail Sales for May. Friday's schedule includes the Producer's Price Index for May and June's Consumer Sentiment Report.

3 Critical Tips To Improve Your Credit Score And Mortgage Terms

When you are looking for a mortgage for your home, your credit score is very important. Any potential lender will check your score and will use the number to assess your creditworthiness and the interest rate that they offer you.

The better your credit score the lower the mortgage interest rates will be available to you, as the lender will be able to see that you can handle credit well.

However, if you have a very bad credit score, it could be causing you to be offered high interest rates on your mortgage that could cost you thousands over the years.

Improving your credit score before searching for a mortgage will ensure that you get the best rate possible. But what can you do to improve your credit score?

Here are three tips that can help you improve your credit score and your mortgage loan:

Be Patient

Remember that improving your bad credit will be a little bit like losing weight. You might not see results right away but it is the long term benefit of your good habits that will make all the difference.

When it comes to all of the ways to improve your credit score, there are no quick-fixes and the best way to rebuild your credit is to be responsible over time.

Check Your Credit Report For Errors

If you don't know precisely what your credit score currently is, the first step will be for you to obtain a credit report. You can request a free copy of your credit report and check it over carefully for errors. There might be an error on the report that is making your score appear worse than it should be.

Set Up Payment Reminders

If you have trouble remembering to make your credit payments by the due date, this can be one of the biggest negative factors bringing down your score. You can ask your bank to set up convenient reminders through the online banking portals so that you will receive an email or a text whenever your payments are due.

Your credit score is very important when looking for a Rochester home mortgage, as it will mean that you receive much better program options and interest rates. Keep these tips in mind so that you can enjoy the best rates possible on your mortgage.

For more tips on how to improve your prospects for the best mortgage, feel free to contact your local, trusted mortgage professional.

What's Ahead For Mortgage Rates This Week -- June 3, 2013

Last week’s financial news was relatively limited due to the Memorial Day holiday and no economic reports being released on Wednesday.

The biggest news in terms of housing and mortgages was the S&P/Case-Shiller Housing Market Indices (HMI) released on Tuesday.

The March HMI data for national housing markets reflected a sharp increase in year-over-year home prices from 9.30 percent in February to 10.90 percent in March.

Twelve cities included in the Case-Shiller 20-city index reported double-digit year-over-year percentage gains for March home prices. While this data strongly supports recovering home prices, analysts cite the need for more jobs, which would enable more consumers to buy homes.

Thursday’s weekly Jobless Claims Report from the Labor Department highlighted ongoing problems with lagging employment as new jobless claims jumped to 354,000. The four-week moving average for new jobless claims increased by 6.75 percent to 347,250 new jobless claims.

Bullish Stock Market Affects Mortgage Interest Rates

Mortgage rates jumped in connection rising stock prices; Freddie Mac reported that the average rate for a 30-year fixed rate mortgage increased to 3.81 percent plus 0.80 percent in discount points.  The average rate for a 15-year fixed rate mortgage increased to 2.98 percent plus 0.70 percent in discount points.

Rising mortgage rates suggest that home buyers may benefit from considering hybrid adjustable rate mortgages; the average rate for a 5/1 hybrid ARM was 2.66 percent with 0.50 percent in discount points.

The Chicago Purchasing Managers Index (Chicago PMI) measures how manufacturing and related businesses perform on a monthly basis.  May’s reading increased to 58.70 and surpassed expectations of a 49.90 reading as well as April’s reading of 49.00. Readings above 50 are considered positive.

Consumer Sentiment rose in May to a reading of 84.50, which exceeded both the expected reading of 83.80 and April’s reading of 83.70. As consumers gain confidence in the economy, they are more likely to buy homes.

Next Week’s News

Construction spending for April is due Monday with a consensus of +1.00 percent as compared to -1.70 percent in March. Rising construction spending could indicate an increase in residential construction, which has been facing obstacles including increasing labor and material costs and a shortage of available land for residential building.

Thursday’s news includes the weekly Jobless Claims report and Freddie Mac’s weekly report of average mortgage rates.

Friday brings the monthly Jobs Report, which consists of the Department of Labor’s Non-farm Payrolls report and the monthly unemployment rate. These reports are significant for gauging national and regional labor markets and for anticipating the Fed’s decision regarding its current quantitative easing policy.

If the Fed ceases or reduces its purchase of Treasury securities and mortgage-backed securities (MBS), mortgage rates are likely to rise.

What's Ahead For Mortgage Rates This Week - May 20, 2013

Last week was jam-packed with economic news; here are some highlights with emphasis on housing and mortgage related news:

Monday: Retail sales for April increased to -0.1 percent from the March reading of -0.5 percent and also surpassed Wall Street's downward forecast of -0.6 percent. Retail sales are important to economic recovery as sales of goods and services represent approximately 70 percent of the U.S. economy.

Tuesday: The National Federation of Independent Business (NFIB) released its Small Business Optimism Index for April with encouraging results. April's index rose by 2.6 points to 92.1. A reading of 90.7 indicates economic recovery. This index is based on a survey of 1873 NFIB member businesses.

Wednesday: The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) for May matched investor expectations with a reading of 44. At three points above the March reading of 41, this report suggests that builders are slowly gaining confidence in national housing markets. 

Thursday: The U.S. Commerce Department reported that Housing Starts fell by 16.5 percent in April to a seasonally-adjusted annual level of 853,000 from 1.02 million housing starts in March. This reading fell short of investors' consensus of 965,000 housing starts, however, this decrease was caused by the volatile apartment construction sector.

Friday: Consumer sentiment for May surpassed investor expectations of +0.3 percent and came in at +0.6 percent. As consumer sentiment improves, it's likely that more consumers will buy homes.

Rising Interest Rates Show Strengthening Economy

Mortgage rates rose last week according to Freddie Mac. The average rate for a 30-year fixed rate mortgage rose from 3.42 percent to 3.51 percent with borrowers paying 0.70 in discount points and all of their closing costs.

15-year fixed rate mortgages rose from 2.61 percent last week to 2.69 percent this week with borrowers paying 0.70 in discount points and all of their closing costs.

This news is consistent with a strengthening economy, but is narrowing opportunities for home buyers seeking both affordable home prices and low mortgage rates.

Federal Open Market Committee Minutes To Be Released This Week

Looking ahead, economic news for this week includes the Existing Home Sales report for April with an expectation of 5.00 million homes sold on a seasonally-adjusted annual basis against the March tally of 4.93 million homes sold.

Also set for release on Wednesday are the Federal Open Market Committee (FOMC) Minutes for the meeting held April 30 and May 1. The FOMC meetings typically include discussions of the Federal Reserve's current policy on quantitative easing (QE) which consists of the Fed buying $85 billion per month in MBS and treasury bonds.

When the QE program ends, mortgage rates will likely increase as bond prices decline due to lesser demand.

Thursday brings the weekly Jobless Claims Report along with New Home Sales for April. The consensus for new homes sold is 430,000 as compared to the March reading of 417,000 new homes sold.

The Federal Housing Finance Agency (FHFA), which oversees Fannie Mae and Freddie Mac, will release its Home Price Index for March on Thursday. 

What's Ahead For Mortgage Rates This Week - May 13, 2013

Mortgage rates rose last week with average rates a 30-year fixed rate mortgage rising from last week's 3.35 percent to 3.42 percent with buyers paying all closing costs and 0.7 percent in discount points.

Average rates for a 15-year fixed rate mortgage rose from 2.56 percent to 2.61 percent with buyers paying their closing costs and 0.7 percent in discount points.

Freddie Mac also reports that average rates for a 5/1 adjustable rate mortgage rose from 2.56 percent last week to 2.58 percent with buyers paying their closing costs and 0.5 percent in discount points. 

Here are noteworthy points from last week's economic news:

Monday:  In spite of improving economic conditions, a majority of participants in the Senior Loan Officer Opinion Survey on Bank Lending Practices indicated that their lending institutions would not be relaxing residential mortgage lending standards. Lenders perceive a significant risk in terms of being required to absorb losses incurred on defaulted mortgage loans. 

Mortgage owners including Fannie Mae and Freddie Mac, along with mortgage insurance companies can require mortgage lenders to buy back defaulted loans or make them whole for losses related to foreclosed and otherwise defaulted mortgage loans.

Tuesday: CoreLogic reported an increase of 1.9 percent in national home prices for March. This news represents the 13th consecutive increase and a year-over-year increase of 10.5 percent.

Home prices were boosted by strong increases in the West; Nevada posted a 22.2 percent gain from last March and California posted a 17.2 percent year-over-year gain. 

CoreLogic predicted a year-over-year increase of 9.6 percent for home prices for April, with a monthly increase of 1.3 percent increase expected between March and April.

Thursday: Weekly jobless claims brought good news as they came in at 323,000; this was lower than expectations of 335,000 new jobless claims and the 327,000 new jobless claims reported in the prior week.

Friday: The Treasury Department reported that the federal budget has a surplus of + $113 billion for April. This was $54 billion higher than for April 2012 and the highest monthly surplus since April, 2008.

Increasing home values and federal budget surpluses, along with falling consumer debt pointed the way toward overall as well as personal economic recovery last week.

What's Coming Up 

This week brings a couple important economic reports affecting the real estate industry including the Home Builders Index on Wednesday and the Weekly Jobless Claims and Housing Starts numbers released on Thursday.

The Consumer Sentiment and Leading Indicators reports will round out the week on Friday. Consumer Sentiment is important in terms of housing markets and mortgage lending; consumers typically don't buy homes or move up to a larger home if they aren't feeling secure about economic conditions. 

This week's economic data may provide further evidence of a stronger U.S. economy as well as a snapshot of retail spending and consumer costs.

What's Ahead For Mortgage Rates This Week - May 6, 2013

Mortgage rates fell last week and approached or reached record low levels.

According to Freddie Mac, the average rate for a 30-year fixed rate mortgage (FRM) fell from 3.40 percent to 3.35 percent. Average rates for a 15-year FRM moved from 2.61percent to 2.56 percent.

Average rates for a 5/1 adjustable rate mortgage (ARM) fell to 2.56 from last week's average of 2.58 percent Discount points for last week's mortgage rates ranged from 0.7percent for 30 and 15 year FRM loans to 0.5 percent for a 5/1 ARM.

Rock-bottom mortgage rates can offset the impact of rising home prices.

Last Week Was A Strong Showing For The US Economy

Last week's economic news provided further indications of economic recovery, with housing related reports contributing to overall confidence in a stronger economy.

Highlights of last week's news include:

Monday: Pending home sales moved up to 1.50 percent in March from February's -1.07 percent. This reading also surpassed Wall Street's forecast of 0.90 percent for March.

Tuesday: The Case-Shiller Home Price Index for February reported that the national average home price had increased by 9.3 percent year-over-year between February 2012 and February 2013. By comparison, the average national home price between January 2012 and January 2013 increased by 8.1 percent year-over-year. Rising home prices are contributing to the economic recovery, but in some areas demand for homes exceeds supply, which also contributes to rising home prices.

Wednesday: The Federal Open Market Committee (FOMC) issued its scheduled statement after its meeting concluded. Committee members noted signs of an improving economy, and cited housing markets as a leading contributor to the recovery. The FOMC statement also indicated that economic conditions were not sufficiently improved for the FOMC to change or cease the Federal Reserve's quantitative easing policy. The Fed's goal for its current quantitative easing program is keeping long-term interest rates including mortgage rates low.

Thursday: The weekly Jobless Claims Report brought better-than-expected news with new jobless claims coming in at 324,000, less than the expected reading of 345,000 new jobless claims and also higher than the previous report's reading of 342,000 new jobless claims.

Friday: The Bureau of Labor Statistics issued its monthly “Jobs Report,” which consists of the Non-farm Payrolls Report and the national Unemployment Rate. Again new jobs added exceeded expectations for April with 165,000 jobs added against expectations of 135,000 new jobs added. April's reading also surpassed the March reading of 138,000 new jobs.

The unemployment rate dropped to 7.5 percent as compared to a consensus of 7.6 percent and last month's reading of 7.6 percent. To put this reading in perspective, the FOMC has targeted an unemployment rate of 6.5 percent as a benchmark for adjusting its current policies including quantitative easing.

What To Look For This Week

This week's economic events include latest Jobless Claims report on Thursday. It will be interesting to see if this week's reading will be lower than last week's reading of 324,000 new jobless claims.

On Friday, the Federal Budget will be released; this could influence financial markets depending on what programs and services are cut or reduced.

What's Ahead For Mortgage Rates This Week - April 29, 2013

Mortgage rates fell again last week and are again near record lows.

According to Freddie Mac, the average rate for a 15-year fixed rate mortgage did achieve a record low of 2.61 percent as compared to 3.1 percent one year ago.

The average rate for a 30-year fixed rate mortgage fell to 3.40 percent and near the record low of 3.31 percent.

Low mortgage rates are helping homeowners with refinancing and are boosting housing markets as more buyers can qualify for mortgage loans.

Home Values Continue To Rise

Last week's economic news was mixed; The Federal Housing Finance Agency, which oversees Freddie Mac and Fannie Mae, released its Home Price Index for February.

According to this index, home prices increased by 0.7 percent between January and February, and increased by 7.1 percent year-over-year on a seasonally adjusted annual basis.

According to the National Association of REALTORS®, existing home sales for March fell short of the expected 5.03 million and came in at 4.92 million existing homes sold on a seasonally adjusted annual basis.

This reading was also 0.7 percent shy of February's reading of 4.95 million existing homes sold.

Some homeowners may be taking a wait-and-see stance as they wait for home values to continue rising.

Employment Numbers Gaining Steam

Weekly jobless claims fell to 339,000 and were short of the consensus of 351,000 and the prior week's 355,000 jobless claims filed.

As more workers gain employment, those able to buy homes increases.

The economy in general also benefits as households gain income they can use for purchasing goods and services.

Consumer Sentiment rose by 2.1 points to 76.4 over the March reading of 72.3 percent.

April's reading also surpassed expectations of 74.0 percent.

As consumers gain confidence in the economy, they are generally more likely to buy homes and make other major purchases that contribute to the U.S. economy.

Coming Up this Week

This week's economic news calendar includes several reports that impact the housing sector as well as the general economy:

• Monday: Personal Income, Consumer Spending and Pending Home Sales reports are due for release.

• Tuesday: The Case Shiller/Wells Fargo Home Price Index for February and Consumer Confidence for April will provide data concerning national and regional home prices and indicate how consumers view the economy.

• Wednesday: The customary statement by the Federal Open Market Committee (FOMC) is set for release at the conclusion of its meeting. The ADP Employment Index for April and Construction Spending for March provide data on jobs and trends in construction spending.

• Thursday: Weekly Jobless Claims report

• Friday: The Non-farm Payrolls Report and Unemployment Rate for April, collectively known as the Jobs Report, will be released.

While we can't predict what will happen with mortgage rates, some industry analysts indicated that they expect rates to remain low in the near-term.

These lower rates should continue to support growth in the Greece real estate market for home buyers and sellers as well as those looking to refinance their home.

What's Ahead For Mortgage Rates This Week - April 22, 2013

Mortgage rates fell for the third consecutive week.

According to Freddie Mac, the average rate for a 30-year fixed rate mortgage fell by two basis points to 3.41 percent as compared to last week's 3.43 percent and 3.90 percent year-over-year.

The average rate for a 15-year fixed rate mortgage was 2.64 percent as compared to last week's 2.65 percent and 3.13 percent year-over-year.

Falling mortgage rates were attributed to reduced consumer spending.

Last week's economic news includes the NAHB Wells Fargo Housing Market Index (HMI), with a reading of 42 for March.

This is four points below investor expectations and two points below February's results.

A reading of 50 or above indicates that more of the builders surveyed have a positive outlook.

March results were impacted by builder concerns over tight builder credit, a lack of available lots and increasing construction costs.

Housing Starts Increased In March

More good news for housing arrived Tuesday when the U.S. Department of Commerce issued its monthly Housing Starts report.

Housing starts for March came in higher than anticipated at a seasonally adjusted annual rate of 1.04 million, against a consensus of 933,000 and also beat February's reported 968,000 housing starts.

Housing starts rose by 7 percent over February, and rose 47 percent over March 2012, the highest year-to-year increase since 1992.

The Federal Reserve issued its Beige Book Report which is compiled from reports by the 12 districts of the Federal Reserve.

5 districts reported moderate economic growth, 5 districts reported modest growth, and 2 reported slight economic growth.

Based on the data contained in the Beige Book Report, economists are not expecting the Fed to make changes to its current quantitative easing (QE) program of purchasing $85 billion monthly in bonds and MBS; this may help mortgage rates remain steady; when MBS prices fall, mortgage rates typically rise.

What's Coming Up Next

The National Association of REALTORS® releases its Existing Home Sales report for March today.

The consensus is for 5.03 million homes sold on a seasonally adjusted annual basis, and against February's 4.98 million existing homes sold. 

Tuesday brings more housing news with the FHFA Home Price Index for February; FHFA is the federal agency overseeing Fannie Mae and Freddie Mac.

The U.S. Department of Commerce releases its New Home Sales for March on Tuesday.

The consensus is 421,000 new homes sold against February's reading of 411,000 new homes sold.

Thursday's Weekly Jobless claims are expected to come in at 351,000 as compared to last week's 352,000.

Employment is a key factor in terms of consumers buying homes and qualifying for mortgage loans

What's Ahead For Mortgage Rates This Week - April 15, 2013

Mortgage rates saw little change last week amidst mixed economic news.

Treasury auctions held on Tuesday, Wednesday and Thursday saw weak demand; this could have been caused by the FOMC minutes that were released on Wednesday.

The minutes indicated that some FOMC members supported ending the current quantitative easing (QE) program within a few months.

The Fed is currently purchasing $85 billion monthly in bonds and Mortgage Backed Securities.

If the QE program is ended, demands for bonds and MBS will decline, which usually raises mortgage rates.

Employment Numbers Show Promise For Housing Market

Thursday's jobless claims offered some positive news for the Rochester real estate market.

Jobless claims fell to 346,000, which is well below Wall Street's estimate of 365,000 jobless claims and the prior week's report of 385,000 jobless claims.

As more people find work, more families become able to buy homes.

Demand for homes will boost the housing market, which is already expanding in many areas.

While higher home prices are good for the economy, higher mortgage rates may be likely to follow.

This potentially presents a "double-edged sword" to home buyers with little financial flexibility.

Slower Retail Sales Largely Due To Autos

Retail Sales, which represent approximately 70 percent of the U.S. economy, moved from February's level of 1.1 percent to -0.4 percent in March.

Expectations were for 0.0 percent change.

The Retail Sales report exclusive of the volatile automotive sector was nearly identical except for the February's reading of 1.0 percent.

These reports suggest that while the economy is improving in some areas, it has a way to go before it has truly recovered.

What's Coming Up Next?

This week, investors will be paying attention to the Consumer Price Index (CPI) and the closely-related Core CPI, which is nearly identical except for its excludes the more volatile food and energy sectors.

These reports will be released on Tuesday for March, with little change expected for the CPI and no change expected for the Core CPI as compared to February.

The CPI is considered an important indicator of inflation.

Unexpected changes in inflationary growth can cause rapid and volatile responses in the financial markets.

Wednesday brings the Fed's Beige Book, which presents key economic data for each of the Fed's 12 regions.

Investors watch the Beige Book for signs of the Fed's position on economic policy during the upcoming FOMC meeting.

Jobless claims will be released Thursday with the expectation of 350,000 claims filed as compared to last week's 346,000 jobless claims.  

What's Ahead For Mortgage Rates This Week - April 8, 2013

Last week's economic news includes several factors that drove U.S. mortgage rates lower.

The Bank of Japan announced that it would increase its purchase of bonds by $1.4 trillion over the next two years. 

This news caused yields on Japanese bonds to fall, which made U.S. bonds more appealing to international investors, that in turn increased MBS prices and caused mortgage rates to fall.

Bumpy Employment Numbers Support Lower Interest Rates

Other significant economic news involves an unexpected drop in the number of new jobs created last month.

The Bureau of Labor Statistics (BLS) Nonfarm Payrolls Report issued Friday indicated that 88,000 jobs were added in March, which fell considerably short of the expected 190,000 jobs added as well as the 236,000 jobs added in February.

Average hourly earnings remained flat against February, which indicates another stall in U.S. economic growth. 

Expanding employment sectors for March included professional and business services and healthcare, while retail jobs decreased.

Jobless claims increased last week in concurrence with lower than expected jobs added for March.

New jobless claims came in at 385,000 and were higher than expectations of 345,000 new jobless claims and the prior week's jobless claims of 357,000.

The monthly unemployment rate fell from 7.7 percent to 7.6 percent, but this isn't encouraging news.

According to the BLS, the unemployment rate fell due to workers leaving the work force instead of workers finding jobs.

Next week, Treasury Auctions will be held Tuesday, Wednesday and Thursday.

On Wednesday, the Federal Reserve will release FOMC minutes.

Fed Continues Monthly Bond Purchases

Investors and analysts review the minutes for predicting future economic developments and also for gauging the Fed's sentiment about how or if changes should be made to the current quantitative easing program (QE).

The current QE program involves the Fed's monthly purchase of $85 billion in bonds and MBS is intended to keep long-term interest rates including mortgage rates low.

Retail Sales will be released Friday, and as indicated by falling job numbers in the retail sectors, analysts are expecting no growth for March in either report. 

Global news concerning North Korea and the European Union economic situation could also move U.S. markets up or down depending on the nature of the news.

While not encouraging in terms of an economic recovery, these events show that the recovery is proceeding with ups and downs; this doesn't provide investors a clear picture and may cause them to seek safe haven in bonds.

The good news for Rochester homeowners is uncertainty and low expectations of the financial markets typically help keep mortgage rates lower.

What's Ahead For Mortgage Rates This Week: April 1st, 2013

European Market Jitters Continue To Affect The US Economy

Mortgage rates fell last week as investor concerns over the European economy grew.

Fears of growing differences between wealthier European nations and European nations needing economic aid brought higher bond prices and lower mortgage rates.

Positive news for Cyprus came when an agreement for an EU bailout was reached, but strict terms indicate that Germany and other nations are growing less enthusiastic about bailing out the banks of EU nations with shaky economies.

Meanwhile, the Italian government has not been able to agree on a coalition government, which reduces the chances for economic reform in the EU's third largest country.

European trade with the U.S. could fall as the result of the EU's ongoing economic challenges; this in turn would likely reduce U.S. inflation, which is good for lower mortgage rates.

Low inflation could also prolong the Fed's commitment to its quantitative easing program that is designed to keep long term interest rates, including mortgage rates, lower.

Last Week's Economic News Quiet, No Major Surprises

On Tuesday, New Home Sales for February were released, and came in short of investor expectations of 420,000 home sales on an annual basis.

February's figure came in at 411,000 new homes sold as compared to January's revised reading of 431,000 new homes sold.

Winter weather conditions are one reason for the decline in new home sales, which was the largest decline since February of 2011.

The National Association of REALTORS® released its Pending Home Sales Index for February on Wednesday; pending home sales reflected the results for New Home Sales with a reading of -0.4 percent as compared to expectations of a 2.0 percent reading.

January's reading for Pending Home Sales was also higher at 4.5 percent.

Home prices and mortgage rates move according to supply and demand; if demand for homes falls, home prices are likely to do likewise as are mortgage rates.

But as demand for homes increases and prices rise, mortgage rates typically rise as well. Would-be buyers who have been waiting for their best deal may want to get into the housing market now, as strong signs of economic improvement are in play, but home prices and mortgage rates haven't yet gone through the roof.

In other economic news, Thursday's Jobless Claims Report fell short of Wall Street projections and came in at 357,000 new jobless claims against expectations of 340,000 new jobless claims.

The previous week's jobless claims came in at 336,000 new jobless claims.

Analysts typically view a four-week rolling average of jobless claims as a more accurate indicator for the economy as jobless claims can vary widely week-to-week.

Consumer Sentiment for March was released Friday and came in at 78.6 and exceeded expectations of 72.5 for March.

The current reading also surpassed the prior reading of 71.8 percent. As consumers gain confidence in the economy, they are more likely to buy homes.

This week, the European Central Bank (ECB) meeting scheduled for Thursday and monthly Employment Data set for release Friday are among anticipated economic news events.