Seattle FHA Mortgage Rate Tracker | Bernanke Speaks, Interest Rates Listen (Demo)

If you watched the 60 Minutes interview on Sunday with FED Chairman Ben Bernanke, you may not have heard anything “convincing” either way.  It’s not what he said or didn’t say, it’s how he said or implied a few things that caused a major stir on Wall Street today.  Bankers and investors were expecting this week to be a slow week in regards to any major movements in the stock and bond markets.  However, that’s not what happened. 

When asked if the FED will continue to expand and support purchasing mortgage bonds?  Bernanke’s short reply was, “It’s certainly possible”. This caused the mortgage bond markets to have it’s greatest improvements in over 3 weeks of getting pummled.  Expecting the FED at some point to add more support to the already $600 billion is exactly what was explained (and I forcasted) in the blog I wrote last month on the Influence of Quantitative Easing

Bernanke went on to mention that jobs will be scarce for a while, and that it may be until 2015 before we see 5-6% unemployment rates again; and reiterated that Quantitative Easing was done to drive interest rates lower and help stimulate a housing recovery.  He closed by re-confirming that he is completely confident that his current approach will keep the U.S. out of a double-dip recession.  What I got out of this short but powerful discussion was that Seattle FHA mortgage interest rates will be getting some assistance in 2011 to drive them even lower… 

So how does all of this news affect Mortgage Interest Rates this Week? 
If Tresury auctions meet with strong demand this week, then I expect more improvement.  Recent Treasury auctions have not been met with strong demand as they have previously this year.  This week with little in the way to disrupt the markets,  markets will have an opporuntiy to think rather than react…  With the economy still only one-step away from requiring CPR,  the extension of the Bush tax cuts and unemployment insurance will help temporarily. 

December 6th 2010 Rate Lock Advice:
If you are needing to lock in the next –
5-7 days – LOCK
7-15 days – FLOAT
15-30 days – FLOAT, markets are still bearish, but looking better
30+ days – FLOAT with caution

For more information on working with me and my team to secure the best interest rate when buying a home, contact me directly at:

Dan Keller
(425) 350-7136

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