Seattle Mortgage Loan and Real Estate Blog

Hello, I apologize for not updating recently but everyone slows down a bit through the holidays and I wanted to wait until the Fed acted on rates this week to bring a few things to light regarding these interest rate cuts.

The Fed cut their benchmark rate by 25 basis points or 1/4% on Tuesday.  I often receive calls right after this occurs as many people assume mortgage rates just dropped. This is NOT the case, in fact mortgage loan rates often RISE after the Fed cuts short term interest rates.  What these rate cuts do is lower the rates on short-term and/or variable types of loans and credit.

Home Equity loan interest rates will drop quickly as they are usually tied to the prime rate of interest, variable rate credit cards will drop, variable rate car and boat loans as well. Fixed rate mortgage loans however are tied more closely to the 10 year treasury bond and often those yields have already priced in the projected move by the Fed well in advance of it actually happening.  This week mortgage loan interest rates have gone up almost 3/8% on 30 year fixed loans so the rate cut did just what I have seen it do many times in the past, it acted to bring mortgage loan rates up instead of down. 

I will post again before I leave for a brief vacation with my kids and I wish you a very happy and safe holiday season.

We literally had the perfect storm hit us over the past 72 hours with a huge snowstorm on Saturday following by record rainfall which proceeded to raise every river in the area to flood stage. 

This is why you are forced to have a flood insurance check with every mortgage loan taken out, you dont think about it until days like this.  I always thought I would love to have waterfront property but after living in this area and seeing the damage that floods cause I checked it off my list pretty quick.  Hopefully everyone is safe and secure, not what people need around the holidays or anytime for that matter. 

Although mortgage loan rates are not at the top of anyones priority list right now they continue to drop to the near record low rates of 2003.  Fannie Mae is getting ready to make mortgage rate adjustments on everyone that does not have PERFECT credit.  What does this mean to you? Keep your credit scores high!!  Please call me if you would like a FREE credit review and to analyze the best way to keep your scores up and ensure that when you need them, the best mortgage loan rates possible are attainable.