Seattle Mortgage Rates Today 9/24/12

Seattle Mortgage Rates Today 9/24/12: As negative sentiment regarding Greece’s debt crisis reveals itself, mortgage bonds reach all-time highs.  The European Central Bank (ECB), the International Monetary Fund (IMF), and the European Commission, referred to as “The Troika,” have been analyzing Greece’s ability to meet its current targets in reducing their deficit.  Greece is due for another round of aid to the tune of €31 billion but only if they are meeting their target.  There is rhetoric that Greece may not be near their reduction target by €20 billion which is twice as much as expected.  How big is this problem?  Nobody really knows.  Perhaps they only choice for Greece is to exit the Euro…not if, but when.

Another EU country, Spain, is experiencing some compromising of its own.  Prime Minister Mariano Rajoy continues to deny any assistance from the European Central Bank.  With a regional election coming up on October 21st, Rajoy seems keen on holding off for help in order to mitigate investor concerns regarding the Spanish sovereign debt.

Again, mortgage bonds are trading at all-time highs; a locking stance is highly recommended.  Fundamentally, rates will not necessarily rise quickly, but sentiment can change quickly and affect the day-to-day rate prices.  Don’t wait, lock your rate if you can—what goes up must come down.

 

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