Seattle Mortgage Rates Today 11/8/12
Seattle Mortgage Rates Today 11/8/12: There is not much to report today as mortgage bonds remain unchanged this morning. Bonds are most likely unaffected as Quantitative Easing 3 continues to do its job and keep rates low and bond prices high. As was mentioned before, as the Fed continues to purchase bonds to the tune of $40B per month the stench of inflation fills the air.
“What does continued bond buying look like?” Over in the UK, the Bank of England ceased their easing program momentarily. Inevitably, inflation reared its ugly head and in order to contain it the Bank of England chose to stop the presses. If inflation rises so does interest rates. The current state of the economy in the UK is quite weak; if inflation continues to rise and interest rates follow, the UK will experience stagflation whereas, inflation is high, the growth rate of the economy slows and the unemployment rate remains high. This is not a good thing. The Fed’s may have something to learn.