Seattle Real Estate Mortgage Rates Today 12/29/2010

Bellevue / Seattle Real Estate Mortgage Rate Watch: 10:00 7 year auctions results………. Drum ROLL……… “A” rating auction and the market is off to the races. We are showing rate improvements across the board. Whew, much needed good news! What happened yesterday. The weak bond auction results from the 5 Year Bonds triggered a sell off which spike yields and pressured rates higher. This is partially due to Wall Street being thin in traders and investors during the holidays. Today at 10:00 there is another $29 Billion in 7-Year notes up for auction. Although we have started the day stronger looking at the bond page we could see a reversal if the auction performs poorly. BUT bargain hunting investors may be looking to make a move so this could HELP the market. VOLATILITY!!!

These auctions of huge amounts of U.S. debt are pivotal to mortgage rates. When auctions do not perform well this means yields push higher and mortgage rates move higher. When auction results come in strong this pressures yields lower and rates lower. Moving forward into 2011 there is still Quantitative Easing 2 that will have to be sold off in debt to the market in bonds and notes. These future auctions for sure will have impact on rates. If the investors do not find the yields appealing as an investment rates will move higher.

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Thank you the Mortgage Reel Team.

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