Seattle Real Estate Mortgage Rates Today 11/12/2010
Bellevue / Seattle Real Estate Mortgage Rate Watch: INFLATION, well it is not here yet but just the thought of it spooks the market right now. And spooking is what it is doing, rates have taken the beating as we continue to trickle higher. Globally the markets are not happy with the Federal Reserves decision to print more money to control deflation. Now China may have to raise interest rates to fight inflation.
The U.S. is in a fragile situation. We were trying to fight deflation by adding more monetary supply to the market, now it seems deflation is under control and inflation has returned almost overnight, or at least the concerns of it. When inflation is a concern the normal way to control it is to raise interest rates. BUT keep in mind our fragile real estate market may not be able to withstand any rise in interest rates at this time.
For now until the word of inflation mellows off rates will continue to be volatile. The G20 also is having significant impact on the market as many countries continue to express their decent on the actions of the Federal Reserve and monetary policy.
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