Seattle Mortgage Rates Today 9/13/12
Seattle Mortgage Rates Today 9/13/12: As I begin to type this, the Fed will begin to release their statement on monetary policy. In the highly anticipated broadcast, we expect the Federal Open Market Committee (FOMC)—the policy-making constituency of the Federal Reserve—to announce the unveiling of a 3rd round of stimulus referred to as QE3. Mortgage Bonds are rallying higher as investors question the ability of another round of easing to actually decrease the unemployment rate as earlier rounds of stimulus did no such thing.
The question regarding QE3 is not if, but when and how much. With unemployment “stabilized” at an unsustainable 8.1% and no signs of falling, economists contend that the central bank will most likely keep Fed Funds Rate low until 2015.
In what form will easing take place? Will the Federal Reserve sell-off short-term debt to purchase long-term debt (Operation Twist)? Or will they purchase Mortgage-Backed Securities (MBS)? These details are the questions that need to be answered on this round of Fed stimulus.