Seattle Real Estate Mortgage Rates Today 10/27/2011
Seattle Real Estate Mortgage Rates Today 10/27/2011: The sell off in bonds continues today as Global investors look towards Europe. As optimism grows that they are heading in the right direction Europe is set to release a huge auction of $1.4 trillion (U.S. Dollars) to recapitalize their banks. With all of the renewed optimism and potential competition to the U.S. bond market has investors selling off U.S. bonds and moving into stocks, this is pressuring Mortgage Rates to move higher. It seems that the market is awaiting for China to make their move if they will invest European Bonds/Debt and how that will translate to the U.S. bond market.
Q3 GDP Nearly Doubles: Growth in the U.S. economy picked up during the third quarter as the gross domestic product from July through September increased at a rate of 2.5%. Nearly double the Q2 reading, and well above the reading from Q1. This represents the fastest growth of 2011, and the largest increase in a year. While this is likely good news for stocks, it could have an affect on home loan rates as money moves out of bonds and into stocks.
Also to keep in mind, the Fourth Quarter has never been good for the Bond market as investors and fund managers position themselves to show strong earnings to close out the year and boast to bring on new investors of their performance. How is this accomplished? By selling off safe investment vehicles like bonds into riskier investments like stocks. When bonds sell off yields move higher which directly pressure Mortgage Rates higher.
For now it seems like the economic outlook is better than media has been beating it up for, BUT it can all change in minutes with any uncertainty anywhere in the world or in our domestic economy in reports. PLUS one to be watching very closely is inflation. The FEDS swore all year that inflation is subdued. WELL as we have all witnessed in back to back reports, INFLATION is anything but tame at this time and moving up. This too can pressure Mortgage Rates higher overnight. NOT to say that it will anytime soon, but we cannot turn a blind eye to it.
Timing is everything just as location of the home is critical. Timing in securing an interest rate, BEST rate, is working with a mortgage professional who has their pulse on the market and when best to advise and educate their clients when timing is right. Along with this key knowledge is to be on top of all of the lending and underwriting changes which seem to almost happen daily. We at the Mortgage Reel are Licensed Washington Loan Originators, serving clients with transparency, knowledge and most importantly keeping your goals in mind. How can we assist you today?
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