Seattle Real Estate Mortgage Rates Today 4/5/11
Seattle Real Estate Mortgage Rates Today 4/5/11: PIMCO “The Authority on Bonds” CEO Bill Gross hit media this morning with a comment that the U.S. debt is “Unattractive” at current levels, referring to the National Debt. The U.S. is on pace to max out the credit card by May 16th at a whopping $14.3 Trillion!!! Trillion!!! The situation is problematic for Congress. If they do raise the limit which they most likely will it will come with consequences. A raise in limit without monetary policy and a cut in spending will react NEGATIVELY for bonds and pressure Mortgage Rates HIGHER. If they were to raise the limit and have a plan to show spending will be CUT may react favorably for bonds pressuring rates lower, BUT we are not talking about the levels in rates of 2010 & 2009. At best it would be to keep rates at current levels or to keep them from moving sharply higher which would impact the housing recovery severely. The U.S. must avoid ECONOMIC concern like Portugal and Greece currently have, a down grade in the U.S. bonds would be detrimental to our economic recovery.
CHINA also in the news as they once again hiked lending rates by .25% for the 4th time in the last 5 months to control inflation. INFLATION keep in mind though not here in the U.S. yet is still weighing on bonds.
Another debate of topic is weather QE2 will need its full dosage and if QE3 will even be necessary. This story is discussed heavily in the financial world and when it is commented on by a leading economist or by the Federal Reserve it does have a heavy impact on Mortgage Rates. Later today the Federal Reserve will release its minutes from the last meeting and it may move the market this afternoon. We will keep you posted with any changes.
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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