Quite the opposite of what many consumer might think there is a good likelihood that the passing of this law "designed to help consumers stay in their homes" could infact cause mortgage interest rates to rise!
When the stock market drops investors seek the lower yielding but greater security of the bond market. Most mortgage debt is sold as mortgage backed securities/bonds. As the stock market rebounds the bond market will have to offer investors higher yields to attract investor dollars which may cause mortgage rates to rise.
I have been counseling my clients to refinace or buy when things are down before the turn around begins. Has your mortgage advisor done the same?
Related articles:
Chicago Tribune's Mary Unberger says Buy/Refinance NOW!
www.MortgageAdvisor.info @ www.GregZaccagni.com
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