Seattle Mortgage Rates Today 12/31/12:  Although talks are currently taking place regarding the fiscal cliff, still no deal has been made.  These talks, however, helped stocks improve though those gains may be lost later.  The market’s reaction has been positive believing that any negative impact can be mitigated way down the road.  Currently, there is a very tentative deal would raise taxes on incomes over $400K; middle class tax cuts would be extended; and unemployment benefits would be extended another 12 months. Unfortunately, we are at the mercy of a highly dysfunctional Congress.

Market volatility has been low given the bond-buying spree that the government has been on at the tune of $40 billion a month.  This is good for mortgage rates.  Should some type of deal break through soon, we may see a knee-jerk market reaction.  Will rates move higher?  If they do, it won’t be by much.

Let’s see what the New Year—and Congress—brings us.  We will be back on January 2^nd.

Here’s to a prosperous New Year in 2013!  Cheers!