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Stock Market plunge good for mortgage interest rates?

By
Real Estate Agent with L. Piriano Real Estate Brokerage 1374082 Ontario

The recent stock market plunge has resulted in a rush to invest in the bond market.

That means there will be pressure before and lowering yields on bonds.

Lower rates should impact mortgage rates in a positive way before buyers.

This will be particularly true should the stock market continue to be in the doldrums.

Stay tuned for the impact especially on variable rate mortgages.

In the United States the Federal gov’t has stopped its quantitative easing program.

Essentially the program included printing more money to circulate with them the monetary system.

Now that those funds are not available it may act to counter the availability of funds therefore 20 upward pressure on interest rates.

 

The question is which will be the greater of the two forces.

Comments (1)

Nicole Doty - Gilbert Real Estate Expert
Zion Realty - Gilbert, AZ
Broker/Owner of Zion Realty ZionRealtyAZ.com

I am completely surprised that 30 yr fixed rates are still as low as they are but every time they tried to inch them up over the past year we here in Arizona felt the immediate impact with buyers instantly pulling back.

Oct 16, 2014 01:38 AM