With the debt crisis in Greece continuing, you might wonder how that will effect us here in the US. Well in terms of Mortgage Rates it’s had quite an effect. Simply put, the uncertainty of the outcomes cause folks to guess which way things will go. When people guess with their investments it tends to cause volatility. That’s exactly what we’re seeing here in our mortgage rate environment.
The insecurities abroad tend to cause investors to look for “safer” investments. US bonds / treasuries are considered very safe. So we’re seeing a lot of money poor into those bonds. When there is high demand for US bonds, it increases their price which actually reduces the interest yield on them. This interest yield is what we see translated to our mortgage rates.
As a mortgage planner, what I see are folks trying to predict this change – Waiting on the sideline in the hopes that rates will come down. That could be a viable strategy that will earn them some savings. But the problem is this volatility. As fast as rates go down, they seem to go up twice. So that if you were “waiting”, you could potentially miss the dip. We’re calling this Greece Lightening – and How To Avoid the Backlash.
Experts say that a better strategy is to get ready so that you can act quickly. Get you ducks in row by first selecting the best lender (my ears are ringing) and get fully pre-approved. That way when that perfect rate comes along, you’re ready to act quickly.
Email me by clicking here, to learn more about the benefits or getting ready now. Or call me now at 858-863-0262.