December 15, 2017

Seattle Real Estate Mortgage Rates Today 4/8/11

Seattle Real Estate Mortgage Rates Today 4/8/11: Attention is all focused on the Government and if they can avoid a “Shutdown.” This will impact not only government agencies but it can spill over into the mortgage world. For example FHA, VA and USDA are all government funded and underwritten loans. In the conventional world, Fannie Mae & Freddie Mac require to verify borrowers income with a tax transcript via a 4506-T. If the IRS is shutdown then 4506/Tax Transcripts would become unavailable. Also slowing the system down and depending on the lender it would make some loans unable to fund. This is all hyper sensitive for purchase transactions that have to meet contractual obligations. Refinances which have locks that will expire if the closing date is not met. All coming at the cost to the consumer. Banks will not pay for extensions so the bottom line it will be passed onto the consumer. As of now no deal has been met. We will continue to monitor the situation.

Inflation has been a concern which would impact mortgage rates but this is not the only pressure we can see on rates in the second half of 2011. What could very well push rates firmly above the 5.00% level is the Federal Reserve. In 2009, Quantitative Easing 1 was used to purchase Mortgage Backed Securities and stabilize interest rates to keep them low. This was accomplished as mortgage rates hit historical lows. BUT now these holdings are going to re-enter the market for sale by the Federal Reserve. With additional supply and a lack of investors, yields on the securities could rise pressuring mortgage rates gradually higher. Granted that the Federal Reserve will use their strategy on how much and when to sell, BUT it remains clear that the future of rates is pointing higher.

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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