Seattle Real Estate Mortgage Rates Today 8/15/11
Seattle Real Estate Mortgage Rates Today 8/15/11: After the most historic week in U.S. history, breaking records in the stock market, Gold at unbelievable levels, oil falling and MEGA millions being lost around the world…….. Today the market seems to have normalized, at least to the point where radical swings are not taking place. Being able to anticipate what rates my do is making sense once again today which leads us up to the big news of the week. Thursday the U.S. economy will receive answers on what will happen in the next chapter. INFLATION or DEFLATION? The Producers Price Index on Wednesday and then the Consumer Price Index on Thursday. As we have mentioned in the past posts, at this time companies cannot pass on the price of higher costs to the consumer because hourly wages are at a stand still. Plus the consumer is weary, conscious of what they are spending money on. If the Consumer Price Index points in the direction of INFLATION then BOND & TREASURIES will sell off sharply, pressuring mortgage rates higher. BUT here is the HOPE, consumer spending is slowing and economic indicators show the economy is once again slowing. IF the CPI indicates DEFLATION is occurring then MORTGAGE RATES could see support to sustain rates or pressure them slightly lower. However as the FED stands by with measures like a Quantitative Easing 3 we have to keep in mind that this would be EXTREMELY bad for Mortgage Rates in the FUTURE as this will only lead to MORE INFLATION.
“TOO BIG TO FAIL” media beat the dead horse out of this comment about the Banks in the U.S. during the financial meltdown two years ago. TODAY the U.S. is too big to fail. At least as a quote, why? Because anyone tied to the U.S. that has invested in our debt is being downgraded as we are being downgraded. Until we can get our finances in order each country who we owe money to will suffer right along with us. In this chaos, the U.S. Treasuries & Bonds are still a “Safe Haven” trade for the investors of the world which in reality is the only saving grace that is keeping our Mortgage Rates low. The Feds have no more power in their hands as we have seen twice now, Quantitative Easing fuels inflation and is bad for Mortgage Rates. For now it seems that Mortgage Rates will remain at these levels through the end of the year pending any reports that may show growth, expansion or inflation which could trigger a sudden move higher.
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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