Hi all: Welcome to you from snowy Western Washington. As many of you are aware, there is significant unrest in Libya right now. This follows upon the heels of government overthrows in Tunisia and Egypt. In the mortgage business, calamity is a good thing!
The resulting unrest has caused mortgage interest rates to dip under 5% again O.A.C. for a 30 year fixed mortgage. As investors get nervous they pull money out of the stock market and seek the safety of bonds. This is good for mortgage interest rates. Will it last? No. But if you're considering buying or refinancing within the next month, you should benefit.
I told all my colleagues in the office that if they want to see mortgage interest rates trend down start a war. I was being facetious because no one would want to be in Libya right now. But bad news economically (Libya is one of the top oil producing nations in the world) which includes a spiking of oil prices causes everyone to panic. Again, I think a lot of this is short term and expect mortgage interest rates to climb again soon. Oil prices will also come down after the unrest subsides.
What are you seeing? What do you think? You comments are always appreciated. Bring on the calamity! Have a great day!
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