Seattle & Bellevue Real Estate Mortgage Rate Watch for 9/28/10
Seattle & Bellevue Real Estate Mortgage Rates get a bump on weak consumer confidence reports. As of 10:00 Pacific time, 5 year bonds getting an A rating. Why is this important to homeowners? The U.S. is financing its debt in bonds and relies on bonds to keep an A rating. When bond auctions have good results, ultimately mortgage rates see the benefit and pressure rates lower. Or create better pricing scenarios to structure closing costs.
The Federal Reserve is paying close attention to Consumer Confidence which if shows to much weakness, could result in futher deflation, deflation to be controlled by Quantitative Easing. Bottom line of for homeowners, pressure rates to move lower.
Please check the Events calendar. Thursday and Friday could come with good news in economic reports which could come at the expense of bonds, for homeowners pressuring rates to move higher. (Keep in mind these are not big jumps in rates, it directly can impact the pricing structure of the loan in closing costs affecting the A.P.R.)