What’s the Current Trend in Seattle Mortgage Rates?

Seattle mortgage rates improve this morning.

What’s Happening in Financial Markets?

There is not a heavy load of economic data getting released.  There will be a Treasury auction today at 10am.  The auction is set for $32B in 3 Year Notes.  The results of the Treasury auction can impact mortgage rates.

How Does This Affect My Mortgage Rate?

Seattle mortgage rates are definitely higher ever since May 1, 2013.  The unfortunate situation is the bonds have not been able to gain positive momentum to help mortgage rates improve.  With higher rates (Historically rates are still low) will this slow the rate of appreciation in the housing market?

Analysts believe the jump in rate will reduce the demand from buyers.  As a general rule of thumb, a 1% increase in rate (we are at) reduces affordability by 10%.  What do you think?