Mortgage interest rates in the US have been moving lower the last few days thanks to troubles in a tiny Mediterranean island country.
As we have noted, the recent rally in the US stock markets caused mortgage interest rates to rise for the last month or so. That stock market rally was slowed this week on news that the tiny European country of Cyprus was in financial dire straits. The startling news was that Cyprus was planning to basically take a cut out of all the money deposited in its banks. It’s hard for us Americans to imagine the government coming in and taking a percentage of the money we have in stored in our bank accounts but that is pretty much what Cyprus was proposing. The very idea of such a move spooked investors all over the world on fears that starting down that slippery slope could eventually lead to a panic and a run on banks in Europe. So far Cyprus has not enacted that plan but the entire episode has cooled the rally in stocks and has sent many investors back into safer US treasury bonds. More people buying bonds drives yields on the 10 year T-bill lower and mortgage rate have followed. As a result, this weeks rates have been better then they were the previous few weeks.
If you have been considering refinancing to a better interest rate now is the time to investigate the various government refinance programs available. Rates are near all time lows for now but can’t stay this low forever. Contact us today by filling in the contact form to the right.