Seattle & Bellevue Real Estate Mortgage Rate Watch for 9/22/10
We called it on the head…… with key words in the Federal Reserves statement by Ben Bernanke yesterday, homeowners received relief that interest rates would remain at these levels for an extended period. This is still short term, BUT it will provide home owners in Seattle & the Greater Eastside markets to recieve lower rates. This came from the “extended period and Quantitative Easing” statement. What does this mean for Homeowners? In 2009, we updated you on the Federal Reserve stepping in to purchase bonds / or mortgage buy back program. This initiative purchased bonds from the market and resulting in sustaining bond yields to remain low, in turn keeping mortgage rates at record low levels. In 2009 the amount purchased by the Federal Reserve toppled $1.3 trillion. The new intiative which is being speculated to be announced in November is going to be $1 Trillion. This would allow rates to sustain these levels….. But as a direct result rates have dipped back down to historical lows once again. BUT keep in mind timing is key, rates will continue to have the peaks and valley patterns for months to come. Ultimately this will allow home owners and future buyers to take advantage of low rates and stretch their purchasing power!
We will be back in touch tomorrow!