Seattle Mortgage Rates Today 9/25/12
Seattle Mortgage Rates Today 9/25/12: Another glorious day for bonds as they reach record highs since the implementation of Quantitative Easing 3. The Fed’s money printing seems to be working as they buy mortgage bonds with such rapture that there is more demand than supply. But it’s not all wine and roses…
As the Fed continues on their printing plight, do we really believe that this last round of easing will create more jobs and economic growth? Taking a look a back at the other 2 rounds of stimulus we know that doesn’t seem the case. Well, when money is printed, inflation knocks at the door. As time will tell, we may see the value of the dollar decrease and find stock prices begin to rise. Given the economic climate that has been experienced more available funds does not induce more spending.
Across the pond, Spain is dealing with another round of austerity measures. Yesterday’s news was Greece and today’s news is Spain, again. Uprising protests over concerns of more cuts exacerbated by the 25% unemployment rate which still looms over parts of Spain. Current Spanish bond yields are unsustainable and one way to lower those yields is to seek aid from the European Central Bank in the form of bond buying. However, Spanish Prime Minister Mariano Rajoy, is holding back from asking—regional elections are expected to take place on October 21st.
Fundamentally, global economic crises and QE3 bond-buying are keeping mortgage rates in check. A locking stance is recommended as any news can affect volatility.