Bellevue / Seattle Real Estate Mortgage Rate Watch: Wall Street closing at 11:00 Pacific Time today. BREAKING NEWS, the Federal Reserve is now predicted to HIKE the Fed Funds rate in 2011 by .50% to control future inflation. With Quantitative Easing 2 and the TAX CUT stimulus being passed will add to the growing debt concerns all fueling INFLATION. This is VERY important for HOMEOWNERS who have A.R.M. and Home Equity Lines of Credit. Though it is nice to have a Adjustable Rate when rates are at their all time historical lows, moving forward it could be a VERY expensive gamble.

The cost of GAS at the pump is also a concern, at the current levels of $90+ per barrel, moving into 2011 Gas could see todays price of $3.00 per gallon to be the lows of the year. Gas and inflation are the ENEMIES to BONDS. Fueling inflation again BONDS react negatively which will pressure interest rates to have much more volatility in 2011.

We will have a post tomorrow for Christmas Eve, if you do not have a chance to check in with us have a HAPPY HOLIDAY, wishing you a joyous and peaceful time.

From Steven, Jason and Keith – Your Mortgage Reel Team