The Week in Review:
The European debt crisis. The declining Euro. The correction in the US stock market.
Home loan rates are near all-time lows thanks to the above factors and caused rates to decrease again last week by approximately .125%.
What to expect:
“I’d rather be lucky than good. If you are shopping for a home or looking to refinance an existing mortgage, you don’t know how lucky you are. The financial problems overseas have caused a tidal wave that has changed the direction of both the stock and bond markets”, causing long-term mortgage rates to dive lower.
The question is: how long will the condition last and will it worsen? Since there is no clear solution in sight, I have to assume this change in rate environment may be around a while. When the financial situation overseas does change, expect rates to move upwards.
Breg-ometer:
Next 7 Days: Possible daily changes in rate; decline possible
Next 30 Days: Rates could come down a bit more
Next 90 Days: Neutral
Courtesy of:
Bob Bregitzer
Southeast Mortgage
[where: 30080]