Seattle Mortgage Rates Today 9/17/12
Seattle Mortgage Rates Today 9/17/12: Although mortgage bonds are trading higher this morning, there is not much to report. Mortgage bonds did get a boost last week after the Federal Reserve announced another round of stimulus referred to as Quantitative Easing 3 (QE3). The Fed intends to purchase Mortgage-Backed Securities to the tune of $40 billion, yes, that’s billion with a “B,” per month until the unemployment numbers dwindle.
“Start the Presses!” Where is all of this money coming from? Obviously, the Fed will run the printing presses at full capacity in order to buy these securities. This announcement will induce the European Central bank to do the same –more printing. With all of this money, will we see inflation? Inflation may be the product of money printing but it could also pave the way for economic growth. All in all, investors may be pulling out of bonds and give stocks a boost. Should that be the case, this may be a good time to lock your rate as rates will not necessarily come down, but rather get more expensive.