Seattle Real Estate Mortgage Rates Today 8/8/11

Seattle Real Estate Mortgage Rates Today 8/8/11:  The U.S. Downgrade has triggered panic in the Stock Market sending the Dow Jones down over 500 points at some times in the day.

The global market is still very BULLISH in the U.S. Safe Haven trade of the Bonds & Equities.  Japan, after opening the Nikkei sharply lower said that investors still see the U.S. as the Safe Haven trade.  This is corresponding to the influx of funds from around the world moving into bonds & equities.  This is still helping to pressure mortgage rates lower as yields are hitting all time lows of 2011.

There is also no forecast for mortgage rates to move higher at this time.

Thank you for your questions about rates moving LOWER.  It is still a crystal ball guess as we are in unchartered territories where there is no history to suggest what could happen.  What is VERY interesting at this time is where rates have stalled from Moving lower despite the radical moves in the bond markets.

Taking a look at todays chart you can see on the right the HUGE swing in green which represents rates improving.  Mortgage Backed securities are trading at their best levels but lenders have not priced the rates in relativity to the market. Only taking gradual cuts in the last 48 hours.  However when the rates swing in the red they are very quick to price change for the worse moving rates higher.

In summary until we see some consistent gains in Mortgage Backed Securities we do not feel rates will make a meaningful move lower which would suggest to take advantage of timing if the rates make sense for your individual situation.

Speculators say that rates will move even lower but there are many who fear if another downgrade in the U.S. were to occur it could send rates higher.  This is what we thought would happen today after the news of the downgrade broke last Friday.  This still shows the U.S. dollar has some resiliency left, even in these uncertain global economic times.  Light at the end of the tunnel though to some very dim is still there.  Optimism as always, Team Mortgage Reel.

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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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