Bellevue Market update
A quick note on the mortgage market
BREAKDOWN, TAKEDOWN…YOU’RE BUSTED!” Bob Seger That classic 80’s lyric aptly describes the market last week, as the Stock market suffered a breakdown, analysts got a takedown, and many investors felt they were busted as Stocks sold off hard on Friday. Why? The result of a super lousy Jobs Report number on Friday morning. US job growth in August was actually negative for the first time in four years, with a loss of 4,000 jobs. And the shocker was that analysts had expected somewhere close to 110,000 new jobs to be created!
But while Stocks suffered on the news, Bonds benefited, meaning that home loan rates on conforming loans improved by .125% to .25%. Additionally, the dismal Report also means the Fed is almost guaranteed to make a cut to the Fed Funds Rate at their upcoming meeting on September 18th, to help stimulate a sagging economy. And in fact, their cut now may be a .50% cut, rather than the .25% that has been speculated.
This action would help stimulate business at large, with less expensive costs to borrow - and also help consumers as well. The Fed Funds Rate impacts many other borrowing rates, such as Home Equity Lines, credit cards, car loans and the like.
If you would like more information on the mortgage market or if you have any questions and real estate in the Bellevue area including Issaquah, Kirkland, Seattle and Redmond them check out our website.
Belleue MLS ServingBellevue.com
Seattle MLS SeattleAreaHomes.com
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