Seattle Real Estate Mortgage Rates Today 9/21/11
Seattle Real Estate Mortgage Rates Today 9/21/11: Hold on, it’s time for Fed Chairman Bernanke to speak on their monetary Policy Statement. From our earlier post this week, there was speculation about “Operation Twist”—the Fed would purchase long-term government securities and sell the currently held short-term paper.
The speculation of “Operation Twist” is stronger than ever. This concerted effort would keep long-term rates at historically low levels and in effect boost lending. How much will this measure cost? It could push near $300B within the next year.
Keep an eye on the Bond Market as they may have already been bought on speculation of “Operation Twist.” After the Fed speaks however, the Bond may sell after Bernanke speaks.
Update: After the Fed spoke this morning (10:15am PST), they stated they will implement “Operation Twist.” The Feds announcement resulted in the buying of long-term Mortgage Backed Securities (MBS). After the Dow (DJIA) drops over 200 points, mortgage rates have hit their historical record low for 2011.
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