Seattle Mortgage Rates Today 3/20/09
Seattle Mortgage Rates Today 3/20/09
Mortgage rates took a dip to historical lows this week for a temporary period. Many people advertised 4.5% for a 30 year fixed and it was highly advertised. The key question is, points and lock terms. Most quotes were based on 15 day or 30 day locks but the process is actually taking 45 – 60 days on the conservative side. Lenders are behind from the last refi rush.
Bernanke announced that more money will be injected to support the mortgage market and stabilize lower interest rates for the long run. That will allow millions of homeowners to secure low rates with the Home Affordable Refi Program. The additional $750 billion added to purchase Mortgage Backed Securities will create a more stable environment for interest rates which needed to be done in order to allow “fence sitter” those who are waiting for interest rates to go lower to realize it is time to get it done. Cramer from CNBC called Bernanke a genious and that any home owner with a rate above 5.50% to call their mortgage broker. If you are still thinking rates are going to go lower we have to pose the question what will make it go lower $750 Billion totalling more than $1.2 trillion has now been set aside for Mortgage Backed Securities……. and the rates still did not break below 4.5%. Of course there will be volatility from day to day, but it is becoming more and more clear that 4.5% is tested and proven strong that this rate may be the floor for interest rates. Now the real debate begins what will happen once the money is no longer available and inflation becomes a concern as we enter into 2010? With fears of inflation interest rates will increase creating a true sense of urgency for home owners to take action. More details are scheduled for release this coming week.
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Erica Rose
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