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.
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