Seattle Mortgage Rates Today 10/23/12
Seattle Mortgage Rates Today 10/23/12: “Is Spain’s Pain Our Gain?” Not surprisingly, Spain’s woes are just beginning. Over the past few weeks Spain has been holding off in requesting a sovereign bailout from the European Central Bank (ECB). Germany’s Chancellor Angela Merkel has been a keen supporter in staving off a bailout as well saying that Spain does not need it right now. The ECB has been in behind-the-scenes talks with Spain’s President Mariano Rajoy in preparation for an inevitable bailout. Exacerbating Spain’s pain is credit ratings agency, Moody’s, who has downgraded 5 specific regions including the economically significant region of Catalonia whose debt is spiraling. The debt crisis in Europe is far from over and you can be sure that more negative news will follow.
In addition to Spain’s debt crisis, boosting bonds this morning was some negative sentiment regarding earnings and lower forecast revisions from some major players in the Dow Jones Industrial Average (DJIA). Investors found themselves moving out of riskier assets and in to the safe haven trading in bonds.
Fundamentally, prices should be higher and rates lower. However, the market is still unpredictable and we recommend a cautiously floating stance.