Seattle Mortgage Rates Today, December 19, 2008

FED chairman, Ben Bernanke, announces Tuesday the Federal Reserve will begin to invest heavily in Mortgage Back Securities. How did this affect mortgage rates? We are now seeing interest rates of 2003 in the last refinance boom. With interest rates primed to continue to hit historical lows the government is hoping to stabilize the real estate market and de-thaw the financial institutions. This creates more opportunities, but are you ready?

Federal Rate Cut

The most recent Federal Reserve meeting brought new hope to housing and mortgage when Federal Chairman Ben Bernanke announced the Federal Reserve will heavily invest in Mortgage Back Securities. This brought interest down to new lows in 2008 to 4.625%. However this was short lived as rates rose within 24 hours back to 4.875%.

Seattle Mortgage Rates Today, December 12, 2008

The Big 3 Auto makers have no bail out plan, how did this affect the market? What is more troubling to the market is the up coming Fed meeting on Tuesday. If they cut potentially by another .50% what will that do to interest rates. Historically in the past the mortgage rates have always increased due to the worries of inflation. However with the current state of our economy in a recession and deflationary concerns will historical patterns continue. Unfortunately we have no patterns to base the future markets. Stay tuned as we will post what happens to the mortgage market on Tuesday.