Seattle Real Estate Mortgage Rates Today 3/29/2011

Seattle / Bellevue Real Estate Mortgage Rate Watch: “Safe Haven” trade continues its sell off, all attention has now turned to domestic news in the Unites States. The Fed’s are in the spotlight once again as two Fed Presidents have been vocal in the media with their thoughts on the next actions of the Federal Reserve. Both stating that action needs to be taken to avoid future inflation and that they may begin to SELL mortgage backed securities that were purchased in 2009 – 2010. As you may recall they purchased these securities to maintain HISTORICAL low rates during the recession to assist in the housing recovery. Now that they may begin to sell the market faces SUPPLY & DEMAND issues. Who will buy this additional supply? China? A big question mark. Japan? Unlikely with the massive rebuild they are facing. Too much supply will pressure rates gradually higher as it is released to the market. Why? If there is not enough demand to meet the amount being sold then yields will rise to attract buyers to the market. Rising yields will translate to higher rates. IF rates rise to fast the economic recovery will stall. To slow and inflation will be a HUGE factor. Interesting times that we face, the Federal Reserve at this time is in control. Let’s hope the megaminds have certainty in their decisions.
On the local home front we want to talk about our real estate values and market here in King County. Team Mortgage Reel is in the process of assisting three home owners refinance their homes, in Sammamish, Greenwood and Downtown Seattle. Within the last 24 hours the INDEPENDENT APPRAISAL reports have come back. ALL THREE are above their original purchase price in 2009. We don’t doubt that there are still pockets and communities still suffering from the ill effects of foreclosures and short sales. BUT there are also areas which are stabilizing and rising. The proof is in the appraisal reports we just received. Granted the road to recovery is still a long journey and will have bumps in the road. BUT!!! Let’s be real here. National Numbers factor in areas like DETROIT which have values below 2000. Are we in the same situation in Washington? Firmly NO. Why, we have Boeing who just won a huge contract that is already positively impacting local jobs. We work closely with Relocation Companies who were FROZEN in 2009, began to thaw in 2010 and are working on bringing quality employees to local companies HERE IN WASHINGTON. They are hiring. It may be strategic, but the positive is that corporate companies are hiring again. This will bring our region more certainty which WILL HELP with our local economic recovery.

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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