December 11, 2017

Seattle Real Estate Mortgage Rates Today 8/1/11

Seattle Real Estate Mortgage Rates Today 8/1/11 : Somebody PINCH ME! Did government really do something for the greater good? Make business decision? Congress has passed a bill but now it is up to the Senate to Approve or Reject the deal which will not come until tomorrow. The debt ceiling has put the U.S. under the financial microscope of the world. All of this un-needed attention has come at a pivotal time in our economic recovery. Housing is a HUGE part of the economic recovery. The debt ceiling debate is still a question mark on how it will impact housing, more so to mortgage rates. Why? Because mortgage rates are tied to the bond market securitized by Mortgage Backed Securities.  Should the bond market move higher do to a possible down grade of U.S. debt mortgage rates would move higher also.  Higher rates in such fragile market may not play well keeping more homes on the market, prolonging economic recovery.

Yet the deal is still not in the bag.  Here is the BIG BUT for the day.  As the debt ceiling dominates financial media investors are still piling into the U.S. Safe Haven trade which has pushed rates to levels not seen prior to Quantitative Easing 2 in November 2010.

As seen in this chart rates are touching levels not seen in all of 2011.  This puts us at the best rates of the year thus far.  Why? Well globally the U.S. is so intertwined in so many economies that if we are downgraded from our AAA rating then so must many other countries.  The domino effect.  The chips will continue to fall all they way down the line.  The U.S. Dollar is the global currency and if the U.S. is challenged then all other countries will face the same result…… at least this is what many economists are predicting.  This still provides the market with a Safe Haven trade in the U.S. as we are viewed as a Stable Market????? This is how it is being interpreted, at least what we can make of it as we write this post. The sentiment can change very quickly so hang onto your seats. It is still unknown what will happen if a downgrade does take place.  Should the “Nay” sayers be correct we could see mortgage rates move higher.  Flip side if the opinions of today be correct we could see even more money flow into the U.S. Safe Haven trade which would result in yields being pushed even lower.

One risk no one is doubting is INFLATION…. not a question of IF but WHEN will it rear its ugly head.  Keep in mind INFLATION will have a very negative impact on mortgage rates as bonds sell off sharply when inflationary concerns returns which will pressure rates higher.

For now the belief is that the U.S. will not default and this is a very POLITICALLY driven move from both parties so they can inevitably point the finger at who was wrong…. go figure.  POLITICS and BUSINESS are just not good combinations, like OIL and WATER they just don’t mix.

BOTTOM LINE…. mortgage rates are low and it is a great time to seize the opportunity if the timing is right for you.  If you are thinking of refinancing or purchasing we would encourage you to view our reviews on YELP.  We are quickly becoming one of the consumers top YELPED Mortgage Professionals.

Team Mortgage Reel

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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