“Do You See the European Debt Crisis Going Away?”
Do you see our own economy getting better real soon? If you have answered NO, to this question, you should also continue to see low interest rates in the foreseeable future.
The housing market is what will assist America toward an improving economy. Putting a new administration in place, will go a long way toward the road to recovery.
I did a preapproval this morning for a couple. They wanted their estimated monthly payment to be about what they were paying for rent, $1,250. As I took them through the approval process, we estimated they can purchase a $200,000 home. They told me, they thought they could purchase a home between $150,000 to $180,000. Interest rates with allow folks to get a lot more home for their hard earned dollars.
Once I did the preapproval, I referred them to a Realtor, Home Inspector, Attorney and Insurance Agent. I love what I do, to impact people’s lives.
Mortgage rates ran a tepid streak started three weeks ago by hovering at around 4 percent this week, according to Freddie Mac, largely because investors continue to flee European sovereign bonds for the safe haven of U.S. Treasury debt.
Mortgage giant Freddie Mac and finance Web site Bankrate.com released weekly surveys that tracked mortgage rates.
For Freddie, rates for the benchmark 30-year fixed-rate mortgage inched forward by a percentage point, placing it at 4 percent after the loan averaged 3.99 percent. Bankrate.com noted the same difference, reporting that the 30-year loan fell to 4.24 percent this week, down from 4.25 percent last week.
The finance Web site saw the 15-year fixed-rate mortgage slide from 3.50 percent last week to 3.47 percent this week, while Freddie observed a 3.31-percent average, up from 3.30 percent.
“This was another week of pretty tame movement in mortgage rates,” Greg McBride, a senior financial analyst
with Bankrate.com, tells MReport. “The key driver of rates remains the European debt crisis, which is helping to keep mortgage rates near record lows.”
The European debt crisis continues to rattle markets. Backing off of a popular referendum for an unpopular bailout package with austerity measures, Greek Prime Minister George Papandreou stepped down recently, with mainland technocrat Lucas Papademos replacing the ousted leader.
Italian Prime Minister Silvio Berlusconi added to the brouhaha over possibilities for sovereign default in Europe – a scenario that would devastate financial and capital markets, if disorderly – by also recently resigning his position.
Less confidence in European sovereign bonds continues to drive investors to Treasury debt, widening Treasury yields and keeping a heel on mortgage rates at a time when a double-dip recession still seems possible for the global economy.
Frank Nothaft, Freddie’s VP and chief economist, highlighted low mortgage rates in a statement while citing “potential for further gains in the near term” for the economy.
He also cited rising retail sales, consumer confidence, and homebuilder confidence as reasons to believe that the economy may soon see a boost.
The 5-year Treasury-indexed adjustable-rate mortgage (ARM) also fell by one percentage point for Freddie, which recorded 2.97 percent for the loan, down from 2.98 percent last week. The 1-year ARM went up from 2.95 percent to 2.98 percent.
Bankrate.com meanwhile saw 3.17 percent for the 5- and 1-year ARMs, just one point above 3.16 percent last week.
Joe Petrowsky, NMLS #6869
Right Trac Financial Group, Inc. NMLS #2709
110 Main St.
Manchester, Ct. 06042
Office: 860 647-7701 x116
Fax: 860 647-8940
Cell: 860 836-9294
Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.
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