Seattle Real Estate Mortgage Rates Today 8/10/11
Seattle Real Estate Mortgage Rates Today 8/10/11: The lackluster policy statement about the economy made by the Fed yesterday provided no hints of a QE3 in the near future. On the other hand, surprisingly, the Fed stated that they will keep rates low for an extended period of time; that time being until mid-2013.
Knowing the crucial effect their vernacular has, the Fed’s Policy Statement provided a volatile reaction to bonds. The aforementioned lack of QE3 along with the uninspiring statement about the economy, bonds had to rally higher. Since the stock market saw no inkling of a QE3, panic ensued in global markets and triggered safe haven trading into bonds pressuring mortgage rates lower. Although stocks moved lower after the Fed’s slightly dismal economic statement, stocks, in a positive bout, proceeded to rally higher as traders had time to ponder then digest the encouraging announcement from the Fed regarding another 2 years of low rates. This morning has seen bonds being the beneficiary of some of the gains that stocks have given up.
So, what do we need to do now? Now that we have avoided default and damage from the downgrade upon us, we need to focus our attention on incoming economic data and news from Europe. What we know now is doubtful and promotes the buying of bonds from global investors seeking a safe haven.
With rates at a historical low, we are in an environment where many people could benefit from refinancing. Although the Fed announced that the Fed Funds Rate will remain at 0% until mid-2013, we can anticipate that mortgage rates will likely not rise; however, don’t expect them to get any lower.
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