June 27, 2017

Seattle Real Estate Mortgage Rates Today 7/14/11

Seattle Real Estate Mortgage Rates Today 7/14/11: After BIG Ben Bernanke hit the floor yesterday answering question for Congress Wall Street reacted favorably to the possibility of another stimulus, QE3!!!  Then today he is not retreating from the possibilities of QE3.  The Fed stands to do what it takes to help the economy but QE3 is not in the books at this time.

Today the 30 year Bond auction had one of it strongest performances of the year receiving an “A” rating.  This has help bonds today hold ground. Rates have returned back to what we call a ceiling of resistance, this ceiling represents a barrier before they can break through and improve further. This ceiling of resistance has been stubborn for the entire year of 2011 thus far.

MOODY’S bond rating firm and the Debt Ceiling of the U.S. Our political leaders are going to take every last second to trade back and forth on what to do about spending. BUT Moody’s came out today and put the U.S. AAA rating in review until political leaders can come to an agreement to raise the debt ceiling. Though no one has doubts the debt ceiling will be raised. At this time it does not reflect well on the U.S. when BIG Government cannot make sound decisions without political bias. A great comic we caught this past week was an illustration with the caption “Stealing from Peter to Pay Paul” as our plan to get out of this mess. On that note, end comment. The sense of urgency however is now at the highest level as the U.S. CANNOT afford to loose our AAA rating. Keep in mind if the U.S. were downgraded the perception of our ability to repay our debt would be questioned, uncertainty would pressure investors globally to move funds out of the U.S.. This would SPIKE yields in bonds, notes, treasuries and instantly pressure mortgage rates higher. This for certain we CANNOT allow to happen.

On the flip side, when the U.S. does raise the debt ceiling it would reinforce the U.S. dollar as a global currency and create certainty that our investment vehicles like bonds, notes and treasuries will remain the Safe Haven when uncertainty looms in the global market. As we have commented and seen in the last 6 months with the crisis in the middle east, devastation in Japan and most recently the controversy in Greece, when global markets become uneasy the U.S. trades as a Safe Haven. This creates and opportunity for mortgage rates to move lower.

This brings us to Italy and Spain which now are in the hot seat, questioned if they will follow suit of the financial woes like Greece. As long as this is unsettled and the U.S. debt ceiling is raised then the bond markets will benefit, pressuring rates to remain low at these levels.

Lets hope Big Government gets it right after being checked like a college student with their first time experience of a maxed out credit card. Pay it down or face default….. We do not want to end up like Greece!

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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  1. Exceptional information on the bond rating and how that affects everyone. I liked reading about the overview of what is going on in other countries, too. Great post.

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