Wow, have you seen where long term (i.e. 30 year fixed) mortgage interest rates have been of late? It is hard to believe, but 30 year fixed mortgages have been available at rates under 4.0% for the past few months. Many people have been asking me “why is this happening and how long can it last?”
The European sovereign debt crisis or more specifically fear of Greece defaulting on their sovereign debt and the domino effect that could lead to has been causing the movement of global money into safe haven investments such as US Treasuries and US Mortgage Bonds giving us the benefit of these all time low interest rates. European leaders have been slowly working through their debt crisis and the risks have been abating. As a result we are starting to see US treasuries and US Mortgage Bonds bounce off of the all time lows to modestly higher levels.
Opportunity for interest rates to move significantly lower from current levels doesn’t exist so best for homebuyers and refinancers to lock in these record low interest rates before they are history.
I’m always happy to help answer your questions!
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