December 14, 2017

Seattle Real Estate Mortgage Rates Today 7/11/11

Seattle Real Estate Mortgage Rates Today 7/11/11: Where are mortgage rates going?  Double Dip, European Default, Inflation, Jobs….. What will be the next big thing to tip rates? Let’s dive right in.

Double Dip Recession: Are we on tilt in the U.S. most economist are saying no at this point but it weighs heavily on the sugar pill of the Debt Ceiling being raised and what budget cut backs it comes with from the Government who spend money like a kid in a candy store.  Regardless the topic of the economic slow down is weighing on the stock market and is coming to the benefit of bonds pressuring mortgage rates lower.

European Default: Now that Greece has its so called bail out and plans in place the pandora’s box for Italy, Portugal and Spain have opened.  Could the entire Euro face default?  Some economist are saying it is a long shot but many are calling the Euro a good bet.  There is still many MONTHS ahead to see what the outcome will be.  Here again when uncertainty grows the U.S. Safe Haven trade benefits.  Why?  Mortgage Backed Securities, Bonds and Treasuries become a investment vehicle for investors to seek “Safe Haven” when this happens yields go down which pressures rates lower.  Again to the benefit of mortgage rates.

Inflation: HERE IS THE SCARY ONE.  Depending on the reports coming out this week on Thursday Producers Price index and Consumer Price Index will gauge if inflation is in check.  Any sudden spikes will trigger fears of inflation which we seen have a NEGATIVE impact on mortgage rates.  However with fears of inflation subsiding we could see this as a helpful push to mortgages, creating the momentum to move lower.

Jobs: The dismal jobs report last week shows the economy still may be sluggish but what many on Wall Street are gambling on is if jobs have hit a mere bump in the road OR if we are heading back into an economic slow down.  Most are on the side of a bump in the road, but only time will tell.  ONCE again, this is pressuring rates to move lower.

Wrapping this all up.  What is impacting rates.  Inflation tame to low, good for rates.  Jobs in a slump, good for rates.  Euro in the doldrum, good for rates.  BUT we are now in earnings season from the corporate world.  Again here Wall Street will be heavily watching for signs of an improving economic forecast.  If this helps to rally stocks it could come at the expense of bonds and mortgage backed securities pressuring rates higher. TODAY the trend is rates are moving lower on slow & bad news on both the global and domestic front.

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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