Seattle Mortgage Rates Today 10/11/12: Affecting mortgage bonds this morning is the Labor Department’s report on Initial Jobless Claims.  At 339,000—its lowest level in over 4 years—the report states that claims fell by 30,000 last week.  This comes after last Friday’s Jobs Report which stated a drop in unemployment to the tune of 0.3%–now sitting at 7.8%.  This being an election year, this reflects a slight uptick in the economy and furthers unemployment rhetoric.  Economists say the labor market is gaining strength.  Stocks are getting a boost upon this news at the expense of bonds.

Given the historically low rates last week, application for new loans—purchases and refinances—increased and will test the Fed’s bond buying program, QE3.  If the Fed can keep up with the supply prices shall remain somewhat higher.  Again, due to market sentiment, knee-jerk reactions will add to the daily, if not weekly, volatility.

There is still time to lock a great rate.  Floating is only recommended for those with time; otherwise, lock ‘em if you can.