Seattle Mortgage Rates Today 3/9/12
Seattle Mortgage Rates Today 3/9/12: Another Grecian Bailout? After private investors of Greek debt were enticed to excuse more than 100B Euros of debt, there was a sharp drop in the Euro. Investors “agreed” to the to the debt forgiveness as the Credit Default Swaps were put into place; if Greece defaults on the bonds, investors will be paid some money—about 3B Euros. Currently, Greece is in a 5-year recession and austerity measures have yet to be started. Once the austerity measures are put in place and adhered to, Greece may find themselves in a full blown depression. Greece’s GDP has shrunk by 7.4% and austerity measures mandated by Germany have yet to be put in place.
Unemployment Rate holding steady? The total jobs created were in line with analysts’ expectations at 227,000 with 233,000 private sector jobs compensating for government job losses. On a positive note, December and January Jobs Reports were revised with an additional 61,000 than what was previously reported. However, the Unemployment Rate holds steady at 8.3%.
A rise in hourly earnings? Hourly Earnings reported a slight uptick of just 0.1% which is half of the 0.2% that was expected. However, after factoring inflation, the real hourly earnings are actually -0.1% from last year. With the slight inflation we are experiencing, wages continue to lag. Without the growth in wages and accumulated consumer debt, one may find it difficult for the economy to grow at a pace to aid in lowering the unemployment rate. Obviously, we see that there is no pressure to increase wages which sometimes indicates that employers may be hiring; employers are not increasing the wages of existing workers to do more, rather they are hiring more people as needed.
Once again, with European debt crises not entirely under control, we will experience unpredictability in the market. Now is the perfect time to contact The Mortgage Reel to discuss your financing options whether you are refinancing or purchasing your next home.