Seattle Mortgage Rates Today 12/18/12: Yesterday, markets received a slight boost as many thought negotiations between the President and House Speaker John Boehner were making progress.  However, by the end of the day progress was at a halt.  A major component of any deal is revenue.  Last week, Boehner considered President Obama’s proposal in raising taxes on the wealthiest 2% of Americans. Obama’s proposal included those making over $250K; Boehner’s proposal considered those making $1M.  President Obama conceded to the Republicans stance to those making over $400K.  Although Boehner has refused, they may compromise at the $500K level.  Initially, the $400K threshold was implemented during the Bush administration.

What’s next?  As the year comes to an end with no deal in sight, the idea that $600B in tax and spending cuts may come to fruition.  Many economists warn that the measures could push the nation into another recession.  Although mortgage bonds seem to inch a little bit higher, rates have not realized any of those gains.  The entire market is waiting in the wings, waiting for a deal…hold tight.