Seattle Mortgage Rates Today 3/1/12
Seattle Mortgage Rates Today 3/1/12: What happened after Fed Chair Bernanke spoke yesterday? His testimony in front of the House Financial Services Committee stated that the housing and labor market were sluggish and fragile. Surprisingly, there was no mention of QE3 exacerbating the disappointment of the markets as both stocks and bonds closed lower at the end of the day.
What can we expect now…QE3? After QE2 ended on July 1st, 2011, over the next several months prices for the FNMA 30-Year bonds climbed steadily even though the Fed was not assertively buying them up. Obviously, with the rise in bonds stocks dropped since quantitative easing ended; risky assets such as stocks were being traded into bonds. We have now seen a dramatic rise in stocks over the past few months anticipating another round of quantitative easing. Now with no mention of QE3, will stocks continue on their path upwards? Perhaps we will see some of those assets return to bonds just as they did after QE2.
So what will the Fed do? We still do not know if the economy is continuing to improve to a level that is strong enough for the Fed not to inject more money into the economy. Yes, the economy has shown some improvement in areas; however, with the economy still in a state of fragility many factors can affect the rate of growth such as the crisis in Europe and rising oil prices. We need to pay close attention to news that may offer insight of the current economy—whether it’s improving or slowing.
What should you do? Although bonds continued their steady climb positively affecting the lower trend in rates, this cycle has passed. The unpredictability of the longer-term rate picture is getting foggier. Again, with no mention of QE3 we need to listen closely to any economic news coming in.
With the unpredictability, can you afford to wait to lock your rate or refinance? Again, this is a great time to begin the process and learn of your options. Give us a call and know your possibilities.