November 30, 2009

The Bellevue and Seattle mortgage rates move with the rest of the US market. There are slight differences in rates in various parts of the country but for the most part they are almost identical.

We do our best to keep track of the most accurate information to give our clients the best information to make decisions for refinancing or purchasing a home. We subscribe to numerous market analysis tools and surveys in order to get information from the most informed and brightest minds in the industry. While there is never any guarantee of market movements, we will do our best to give our clients an idea of trends and likely direction of rates.

A recent survey of mortgage experts revealed that a large majority believe interest rates will be higher than they are now. This is mostly due to the fact that interest rates are close to the lowest point in all of 2009. On top of that, the rates in 2009 have been the lowest we have had in 50 years. Those two factors alone suggest that the odds are against rates improving. On top of that, any rebound in the economy and/or the stock market will result in interest rates moving higher. There are signs of life in the economy but the rebound is modest at this point. The stock market has recovered about 50% of what was lost at the low point in March 2009. The national mood is much improved and this can be a positive thing for consumer spending. Consumer spending is said to be key to a legitimate recovery. The large amount of US Government borrowing is a looming issue but it's affect is likely some time off in the future.

Those that say rates will improve or stay the same are a significant minority. There are many good reasons to believe that they will be correct. Job losses have slowed but are still not positive. This is causing many large retailers to start their holiday sales early and offer even more discounts. In spite of these incentives many believe that holiday spending will be down again this year. Bad sales could lead to even more job loses and thus the situation feeds on itself. Even Fed Chairman Bernanke suggested recently that recovery will likely be tepid, at best, in the short term. There are troubling signs in commercial markets and major financial institutions around the world. All of these factors suggest that rates could remain low for the next 30 days.

Bellevue mortgage shoppers could be in for a treat this holiday season as I believe the minority will be correct. Do not base your decision on uncertain predictions as rates now are too attractive to wait for them to improve. Contact us today for your best rate quote.