November 23, 2017

Seattle Mortgage Rates Today , June 15, 2009

Seattle Mortgage Rates Today , June 15, 2009

Interest rates move lower, why?

As China re-emerged investing in long term bonds home loan mortgage rates welcomed the investors lowering yields and rates.  China originally questioned the ability of the United States to be able to repay our long term debt.  China is currently holds approximately 37% of the United States national debt.  With such a large stake in our country it was with due diligence they questioned the current administration for their spending.  Now that China is once again investing in the U.S. shows signs of reassurance to the global economies that we are beginning to stabilize.  

Will interest rates fall below 5.00%?

At the current trading levels it will take more days like we saw at the close of market last week for rates to fall lower.  Monday, June 15th,  began with the same positive patterns in monies flowing into the long term bonds however there is a lot of speculation around the outcome of the presidential election in Iran.  With the right political leader in place the United States can benefit from the new relationship which could pressure the price of oil lower for the summer.  Consumer Price Index and the Philadelphia Fed Index due Wednesday and Thursday could bring some volatility in rates being pressured higher.   Keep in mind we lost the high 4.00% rates in a matter of 48 hours and the spike higher continued for 10 trading days.  With the economy in a potential recovery from recession all indications lead to interest rates moving higher. 

What will it take for rates to move even lower?

Economic data coming out week after week show positive signs of the economy in recovery.  What still looms and weighs on the market is the unemployment in the United States.  Initial jobless claims continue the steady rise.  This could be the pressure to keep rates from moving higher.  However as we saw almost two weeks ago if confidence is lost in our long term bonds rates can spike higher quickly.  Investors Foreign and U.S. are looking for higher paying yields which will keep pressure on rates to move higher.  If you are waiting for rates to move below 5.00% you will have to have a stomache for volatility.  A combination of investments in bonds, unemployment  and economic data will have to play back to back to pressure rates lower.  Many economists have already said this would have to now the perfect storm for this to happen.  Higher rates are definitely the forecast for the future.  

Timing, timing, timing will be key!!!!

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