Seattle Real Estate Mortgage Rates Today 11/28/11
Seattle Real Estate Mortgage Rates Today 11/28/11: Hope you had a great Thanksgiving. Back to business as the market is trading on volatility, speculation and uncertainty. As Europe begins their long road to recovery, investors for now, are believing the plans put in place will help the Euro. This is far from over, BUT it has boosted the stock market. Closer to home here in the U.S. rumors of a potential QE3 in the form of $545 Billion in purchases of Mortgage Backed Securities from the Federal Reserve has Mortgage Rates showing a slight sign of improvement.
What is more of interest is the 10 Year bond which is now trading below 2.00%. Though there is not a true correlation between the 10 Year Bond and Mortgage Rates it has been a conversation of many banking economists. Why is this of interest? Banking Economists have been forecasting if the 10 Year Bond dips to the mid to low 1.00% range the impact on Mortgage Backed securities will be the same, pulling Mortgage Rates lower. This could be the pivotal push to send Mortgage Rates below the levels we have seen for the past 24 months. Once again creating an opportunity for homeowners to increase their cash flow.
Could the sales from Black Friday and Cyber Monday show a possible recovery? Have consumers opening their wallets to begin spending? Or is this just savy buyers taking advantage of deep discounts from retail prices? It is to early to tell, Wall Street believes it is a positive sign as it jumped over 300 points in early trading but lost steam by market close. Why is this important to rates? As of recent when the Stock Market moves sharply higher we see a sell off in longer term investments like Mortgage Backed Securities pressuring Mortgage Rates higher. However today we held AND added to the gains which helped to pressure Mortgage Rates slightly lower. This again could be on the rumors of a possible QE3 which would come about in first quarter of 2012.
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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