Maybe Amazon has learned slow and steady growth versus big splash is the way to go with their failed HQ2.5 New York experiment, and troubled HQ2.5 Crystal City attempt. Because they’re slowly but surely moving thousands of jobs over to Bellevue. This is despite claims Bellevue is NOT filling the void of the former HQ2 cities referenced above.
Check this out, and connect these dots:
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- Several thousand Seattle based Amazon employees were told they would be moving to Bellevue.
- Four buildings newly leased in Bellevue, totaling more than 1 million square feet (room for about 5,500 employees).
- Amazon has 10,967 full-time jobs listed for offices within 10 miles of Seattle, with about 9,451 of those jobs estimated to pay in the 6 figures.
- Direct quote from Amazon: “Our vision is to create an urban campus in downtown Bellevue where employees will all be within walking distance of each other and have easy access to public transit,” said Dave Clark, Amazon senior vice president of worldwide operations, in an email to employees.
- Aaaand a different statement from Amazon: Amazon in a statement praised Bellevue…for its amenities, quality of life, talent pool and “business-friendly environment.” Bellevue leaders cheered the news. Read more HERE
Apartment Life
In other news, Seattle’s apartment scene is exploding. Why is this important? Because if apartment rent doesn’t rise, the motivation for renters to buy a home falls. This equals downward pressure on the Puget Sound housing market appreciation rates.
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- According to RentJungle.com, there are currently 2,039 apartments listed for rent in Seattle.
- Rents have increased by 2.97% from 12 months ago. But according to the Seattle Times, much of that is due to the new luxury units flooding the market. When looking at the same unit year over year, rents have increased only .5%. This is less than inflation (the Core rate on the beginning of April’s Personal Consumption Expenditure report was 1.8% year over year)
- Lastly, a picture is worth a thousand words: That’s A LOT of new apartments.
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Summary
- Rates are still very low = Upward pressure on Seattle housing market appreciation.
- Amazon has 10,967 full-time jobs listed for offices within 10 miles of Seattle. With about 9,451 of those jobs estimated to pay in the 6 figures equals upward pressure on Puget Sound housing market appreciation.
- Apartment rents aren’t rising equals downward pressure on Seattle housing market appreciation.
Interest Rates (for 4/5)
Per Bankrate.com, the 30 Year Mortgage interest rate Rose to 4.29%, with .33 in discount and origination points. Rates are near their 1 year low
Mortgage rates this week (for 4/5)
Recent steep declines in mortgage rates have subsided as the benchmark 30-year mortgage rate hit 4.29% this week, up 12 basis points from 4.17% a week ago, according to Banrkate’s latest weekly survey of the nation’s largest mortgage lenders. Meanwhile, the lowest rates in more than a year sent thousands of homeowners to lenders for mortgage refinances.
A year ago, the 30-year rate was 4.55%. Four weeks ago, the rate was 4.62%. The 30-year fixed-rate average for this week is 0.81 percentage points below the 52-week high of 5.10 percent and is 0.12 percentage points greater than the 52-week low of 4.17%.
The 30-year fixed mortgages in this week’s survey had an average total of 0.33 discount and origination points.
Over the past 52 weeks, the 30-year fixed has averaged 4.73%. This week’s rate is 0.44 percentage points lower than the 52-week average.
- The 15-year fixed-rate mortgage was flat at 3.63%.
- The 5/1 adjustable-rate mortgage rose to 4.02%from 3.98%.
- The 30-year fixed-rate jumbo mortgage rose to 4.27 percent from 4.21%.
- At the current 30-year fixed rate, you’ll pay $494.28 each month for every $100,000 you borrow, up from $487.27 last week.
- At the current 15-year fixed rate, you’ll pay $721.28 each month for every $100,000 you borrow, unchanged from last week.
- At the current 5/1 ARM rate, you’ll pay $478.57 each month for every $100,000 you borrow, up from $476.26 last week.
Results of Bankrate.com’s weekly national survey of large lenders conducted April 3, 2019, and the effect on monthly payments for a $165,000 loan:
The “Bankrate.com National Average,” or “national survey of large lenders,” is conducted weekly. The results of this survey are quoted in our weekly articles and national media outlets. To conduct the National Average survey, Bankrate obtains rate information from the 10 largest banks and thrifts in 10 large U.S. markets. In the Bankrate.com national survey, our Market Analysis team gathers rates and/or yields on banking deposits, loans and mortgages. We’ve conducted this survey in the same manner for more than 30 years, and because it’s consistently done the way it is, it gives an accurate national apples-to-apples comparison. https://www.bankrate.com/mortgages/analysis/
City of Seattle Stats for Single Family Residences – Updated 4.5.19
Scott Sheridan is a Loan Officer with Primary Residential Mortgage, Inc. Being in the mortgage industry for three years, Scott brings a fresh millennial flair to the industry. He is well-versed in the most modern, efficient, and convenient ways to get things done. Scott combines these skills with a genuine love of his work and recent experience in what is it like to be a first and second-time home buyer. You can follow Scott’s weekly market updates on his PRMI Facebook Page.