Good Morning,
I hope everyone had a great Memorial Day weekend! A huge thank you to the men and women who have sacrificed so much for our country. How’d you enjoy your extended weekend? Shannon and I decided to keep it very simple and spend the day with just us and our daughter. It’s funny how easily something like that can get taken for granted, we were happy to have the presence of mind to soak it in.
Rates are trickling even lower and the main reason behind it remains the same that I have echoed for the past few months. Europe’s ever-present debt crisis in the Eurozone. The main news has been Greece for quite some time but Spain has re-emerged into Crisis mode with a request from the European Central Bank to help bail out their fourth largest bank. This continuing news from several countries is causing a lot of concern for a couple reasons.
First, the ECB isn’t insured like are banks are with FDIC, stirring major fears of a bank run by citizens fearing they will lose their money due to a bank failure. This is what we saw during the great depression in the 1920s-1930s, leading to the creation of the FDIC. Can and will the ECB create something similar? The most financially prudent countries aren’t too keen on this idea as it would have to be them to come up with the main financial funding for something of this nature. Second, without some way of easing the public fears, a bank run is a big concern because if everyone rushes to pull their money out, we could see exactly what everyone is fearing, banks starting to fail and that could be devastating to the Eurozone as a whole. Only time will tell but right now, there are a lot of concerns that Europe is going to have to figure out how to resolve if they want to get back on their feet.
Have a great week!
Matt
Rates: 30 year fixed at 3.625% (APR 3.68) and the 15 year at 2.875% (APR 2.973), FHA: 3.375% (APR 4.179): As always rates change with individual credit scenarios and programs, APRs are estimated based off of a $250,000 purchase price with 20% down and a 740 credit score, if you want an exact quote, call. These are not quotes, merely a baseline measure to gauge how rates change from week to week.
Matt
Matt Royer
Mortgage Consultant, CMC | Homes Mortgage
NMLS# 366970
612-232-7646 c
651-770-0637 o
651-294-1001 f
www.MattRoyer.com
mroyer@homesmortgage.net
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