My Mortgage Guru is saying that the tragedy in Japan has out us visiting The Undiscovered Country, relative to the prospects for the global economy. "While the scale of the disaster in Japan and the potential for even more trouble is still being evaluated, the short term impact of the events may be positive for mortgage prices. Stocks are down across the world as the effect on companies who do business in Japan is under scrutiny. Traders are expected to be cautious for several days as the situation clarifies. Consequently I expect mortgage prices to drop today and perhaps for the next few days. After things become clearer, the longer term impact of the tragedy could actually hurt mortgage pricing." - Steve Taylor, Mortgage Professional, at www.ameramortgage.com
Steve adds that, regarding the impact of international or political events, "never has such a tragedy occurred in such a populous, industrialized country that is such an integral part of the world economy. Consequently the global economic impact cannot be fully comprehended at this point. Initially, one impact will likely be a drop in oil prices due to the loss of demand from Japan."
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