Seattle Mortgage Rates Today 12/28/12
Seattle Mortgage Rates Today 12/28/12: As we near the end of the year without a resolution to the “fiscal cliff,” global markets are being negatively affected. Stocks in the U.S. have been falling this past week giving bonds a slight uptick in prices. With no time to spare, Congress may let the tax hikes and spending cuts take place and then make an effort to retroactively find a solution after the New Year. President Obama and lawmakers will meet later today to work on a solution. The House announced that it would convene this Sunday in an attempt to resolve the issues.
The last week of the year finds trading at low levels. The Federal Reserve continues its bond-buying spree through the implementation of QE3 giving bond prices a bit of stability before year’s end. Again, with no solution in sight, we may see bonds further benefitting.
Very important for all home owners who are currently in a short sale position: With the fiscal cliff resolution far from coming to a conclusion and the Mortgage Forgiveness Debt Relief Act not even being discussed for a possible extension for the 12/31/12 deadline…taxes must be considered. This will be a serious tax burden in 2014 when filing for 2013 taxes. On average, it is calculated that a home owner could owe $25,000 or more to the IRS in income tax. OUCH! With the housing market and economy in recovery mode, it would not seem that an extension would be granted or needed. The “Fiscal Cliff” is a clear example of the pain government has to endure in order to balance the budget. Taxation on short sales, foreclosures and mortgage reductions will be considered income. This is a perception that must be considered as reality now. “Consult a CPA or Tax adviser for your specific situation”