Seattle Mortgage Rates Today 11/16/12
Seattle Mortgage Rates today 11/16/12: Concerns over the euro zone’s debt crisis continues to weigh on investors negatively affecting top European shares. Protests and strikes continue to plague the region with more rhetoric of tax hikes and spending cuts. As for Germany, their debt auction was successful due to fear and uncertainty surrounding Greece and Spain.
Here on this side of the pond, mortgage bonds continue their downward trend regardless of some key factors; this, after a week of bond gains. Now that the elections have passed, investors began to sell off mortgage bonds. As the Fed can only purchase so much, bonds’ downward trend is being supported by the Fed’s inability.
Uncertainty regarding the fiscal cliff is also weighing on bonds. If the president cannot get a bi-partisan compromise, expect bonds to be positively affected. However, should a compromise be reached, investors are likely to move into riskier assets. An uptick in rates may come sooner than later if investors sense positive economic data.
We a recommend a cautiously floating stance as we wait for markets to stabilize.