Local Real Estate News Impacting Seattle - Real Estate - Mortgage Financing

Seattle / Bellevue Real Estate Mortgage Rate Watch: We send our thoughts and prayers to those affected by the earthquakes and Tsunami in Japan.

The market is all over the board today. Bonds are being pressured higher. In what normally would cause investors to seek the U.S. Safe Haven during a natural disaster, we see it doing the opposite. Japan is the third largest holder of U.S. debt at the tune of $877 Billion. They have begun to sell off some of their positions to raise capital to fund the recovery from the disaster. This has applied pressure to the mortgage rates today.

Then there is the continuing crisis in the middle east which now includes Saudi Arabia. This could have a major impact on the United States because Saudi Arabia is the largest provider of OIL around the globe. Should they slow down or even shut down supplies the cost of Gas would sky rocket overnight.

China, the triple whammy of the day. The peoples bank of China announced that they may have to have yet another rate hike to control inflation and slow lending. But this will come at a cost to the U.S., if China continues to rise and the U.S. remains at current levels their markets will offer higher yields to investors. This is bad for the U.S. because. in order to attract those investors back we would too have to raise our yields. Rising Yields = Rising Rates. This is something that the Federal Reserve CANNOT control. Also if the Chinese Yuan gains to much strength against the U.S. dollar would cause the manufacturing and imports to rise. This would increase the costs of goods to US, the consumers which spikes Core Inflation Higher. Inflation is the ENEMY of RATES/Bonds.

As you can see it is not an easy world to stay on top of not only industry lending guidelines but also to understand and educate a client on the right times to strategically secure a rate. We at the Mortgage Reel provide this information to create more transparency and to most importantly earn the trust from the many home owners we assist. We are committed to work in the best interest of our valued clients.


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