November 24, 2017

Seattle Mortgage Rates 5/29/12

Seattle Mortgage Rates Today 5/29/12: Spain’s dire state of uncertainty endures as debt yields continue to rise.  Given that there is no type of bank guarantee for deposits, attempting to recapitalize the banks has been difficult.  To compare, in the US, should a bank hold a minimum of 5% of non-performing loans against its capital base, the Federal Deposit Insurance Corporation (FDIC) would seize the bank to protect the deposits.  With property values deteriorating quickly, many banks have more than 20% of non-performing loans against its capital base.  Ouch.

How can Spain be saved?  Again, the recapitalization of Spanish banks will be difficult as members of the EU must resolve any finance issues without the help of the European Central Bank (ECB).  There is conjecture that the government of Spain may trade their sovereign debt for bank shares of stock.  The sovereign debt that banks acquire may be used as collateral to obtain the badly needed funds to recapitalize the banks.  Time is running out and the pressure is on the ECB to contain the crises.  US bonds are benefitting as the uncertainty and the idea that the ECB may have to step-in and begin printing Euros.

As the season of home buying has begun, are you prepared to make on offer on that house you just viewed? Is your offer strong enough to entice sellers? WE ARE THE PURCHASE EXPERTS! By working with The Mortgage Reel Team—unlike the big banks—be assured of an on-time 30-day closing! Contact us today and receive a same-day pre-approval.

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(206) 219-3088

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