This week, it’s STILL about Greece. Because of Greece and other nations, the Euro zone continues to impact our mortgage market. Remember, as worries over Europe rise, money runs to the US bond market for safety and rates fall. When fears subside, the reverse happens and rates go up.
This week the European Central Bank (Europe’s Fed) did what we did with TARP and promised 750 billion Euros (sound familiar?) to buy the debt of troubled countries. This fix calmed Euro fears, money flowed back out of the US bond market, and rates ticked up. But Europe is NOT the US. It’s a collection of different sovereign nations. Try as they might to act like one country they are not. Imagine your typical family. When the Dad (or Mom) decides something, it happens. But if the decision was left to the kids, it only happens if they all agree…and when was the last time you saw brothers and sisters all agree for an extended time frame? So, while the 750 BILLION might pay off the family credit cards, there are concerns that the kids will run them right back up again once the crisis is over. This caused fears to return and money flowed back into the US bond market pushing rates back down. So, the opportunity remains: The recent ½% drop gives a buyer $20,000 MORE HOUSE for the SAME MONTHLY PAYMENT!!!! Buyers need to act NOW so they don’t miss out.
BOND MONEY STILL AVAILABLE WITH A RATE OF 5.65% AND 3.5% DOWN PAYMENT ASSISTANCE.
Last weeks rates ranged between 4.75% and 5.0%, depending on program, credit and points.
