Seattle Real Estate Mortgage Rates Today 3/7/2011

Seattle / Bellevue Real Estate Mortgage Rate Watch: Gadaffi’s Power and Rumors of Leaving stirring the pot as OIL continues its spike in prices.  As the price per barrel continues to rise the concern here in the U.S. is Core Inflation.  Core Inflation is rising sharply in all goods that we buy everyday.  Groceries, clothing, food….. EVERYTHING and INFLATION is bad for Bonds.  The FEDERAL RESERVE is powerless at this point to fight inflation BECAUSE its only tool to control INFLATION is the FED FUNDS RATE, BUT if they hike the FED FUNDS RATE now it will slow or almost standstill the economy.

This week AUCTIONS are back and you bet they will have a impact on rates.  The market will be watching with an EAGLE eye how investors purchase U.S. debt.  The treasury will auction off $32 billion in 3 year notes, $21 Billion in 10 year notes and $13 Billion in 30 year bonds, all between Tuesday through Thursday.  The auction results will out at 10:00 AM PT and we will cover the results and impact on mortgage rates.

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