Seattle Mortgage Rates Today 8/15/12
Seattle Mortgage Rates Today 8/15/12: “Uh, can somebody tell me what’s going on here?!” We’ll keep this short and to the point. Mortgage bonds have been on a losing streak for the past 9 days beginning with the unexpectedly high Jobs Report on August 3rd. That was the beginning of the downfall. Although Europe is not out of their crisis, some positive sentiment regarding the buying of Spanish and Italian debt by the European Central Bank was market-altering. Followed by other positive reports including yesterday’s unexpectedly high Retails Sales figures continued to boost stocks at the expense of bonds.
Historically speaking, as bond prices continue falling breaking through levels of support, the market reaction will reflect bond selling to speed up even further. If we see the bonds continue to fall at this speed next week, you may believe that the prices today are your friends.
Again, fundamentally there are many reasons why bonds should improve. Stocks are gaining traction quickly and what goes up must come down. Although analysts believe that Quantitative Easing 3 is imminent, stocks have already reacted to this news. Once QE3 is implemented, can stocks actually gain? We think not. And finally, with the upcoming political circus that is well underway, much uncertainty still exists. That, my friends, is always good for bonds. Hopefully we will see bonds start to move on up.
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