Happy NEW YEAR! Bellevue / Seattle Real Estate Mortgage Rate Watch 1/3/2011
Happy NEW YEAR! Bellevue / Seattle Real Estate Mortgage Rate Watch: As we closed 2010 we are off to the races today as Wall Street rallies with optimism! New reports from China show that their recent rate HIKES may have done the trick to cool the rapidly growing economy and tame inflation. This has Wall Street trading in the GREEN which is coming at the expense of bonds.
In the last 60 days of 2010 we saw the S&P 500 finish up 13% higher, this much coming from QE2. The economic stimulus hitting the economy in full swing has many in optimism that the economy will continue to grow in 2011. This is good news to Wall Street BUT keep in mind that this will pressure rates to move HIGHER. HOW HIGH?????? Great question. Many of the leading bank economists say that we will see rates in the MID 5.00% range by June of 2011 and hover near these levels.
The REFI BOOM is over. For those who still have a A.R.M = Adjustable Rate Mortgage, NOW is the TIME to make your move! Refinance or take action necessary to CONVERT to a FIXED RATE MORTGAGE. Once the LIBOR and TREASURIES begin to move HIGHER so will your A.R.M.
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HAPPY NEW YEAR from your MORTGAGE REEL TEAM!