Here is an interesting article in the Austin American Statesman from Bloomberg News on the unexpected prospect of mortgage interest rates in the U.S. actually flirting with historically low levels over the next couple of months, as a result of the debt crisis now facing a number of southern European countries, including Greece, Spain, and Italy. The average U.S. rate for a 30-year fixed mortgage has come down over the past couple of weeks to within .07 of a point of its lowest level ever. Conventional wisdom for the past few months has been that rates had gone as low as they were going to go, and the trend for the foreseeable future would be increasingly higher rates. However, most analysts did not foresee the severe, sustained crisis in the European economy, which has caused investors to pull money out of those markets and buy more U.S. Treasury Bonds, as the U.S. economy continues to show improvement. This means borrowing conditions for home buyers, and those looking to refinance their existing loans, may actually become more favorable for the next few months, making it an excellent time for lenders and realtors to check in with any potential clients who have been sitting on the fence.
Here is a link to the article: http://www.statesman.com/business/personal-finance/europes-debt-crisis-helps-knock-down-mortgage-rates-713730.html
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