December 11, 2017

Seattle Real Estate Mortgage Rates Today 3/22/2011

Seattle / Bellevue Real Estate Mortgage Rate Watch: Improving conditions in Japan and the LACK of news from the Middle East has investors shifting out of the U.S. Safe Haven. During Crisis investors shifted into the U.S. Bonds and Treasuries as a Safe Haven trade. This HELPED to push rates lower. In the exact opposite move when funds shift out as investors seek other global investments, mortgage rates are pressured higher.
Inflation is once again stirring the pot as manufacturing costs of goods continue to be driven up because of the cost of OIL which is used in so many variables from transportation to plastic. Now a Wall Street debate on weather BIG Corporate will keep prices the same and have less profitability or will they pass the increased costs to the consumer. This debate no doubt will continue through this year. BUT the impact on Home Mortgage Rates is Core Inflation. INFLATION is a the enemy of Bonds and Mortgages. Both Locally and Globally inflation is becoming a growing concern as we just saw this again in China.
The Treasury announced yesterday that it will SELL $142 BILLION worth of Mortgage Backed Securities in the tune of $10 Billion per month. The Treasury had purchased these securities in 2009 – 2010 to assist in maintaining low rates during the economic and housing recovery. Now that market conditions are slowly improving they are beginning to sell, BUT with additional supply to the market if there is not enough demand what will happen to Mortgage Rates? Japan is still the second largest holder of U.S. debt and now they are in no position to buy more. China is a BIG question mark. If there is too much supply and not enough demand this may also have a negative impact on Mortgage Rates. Only time will tell.
Timing is everything just as location of the home is critical. Timing in securing an interest rate, BEST rate, is working with a mortgage professional who has their pulse on the market and when best to advise and educate their clients when timing is right. Along with this key knowledge is to be on top of all of the lending and underwriting changes which seem to almost happen daily. We at the Mortgage Reel are Licensed Washington Loan Originators, serving clients with transparency, knowledge and most importantly keeping your goals in mind. How can we assist you today?

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