Mortgage News Here & There

Lots of happenings around the world regarding business and economic news that can effect mortgage rates. We have to remember that we are in a global economy and the rate of your mortgage can be effected by economic or geo-politcal events from around the world. Here are several news stories that have had or may have an effect on mortgage rates.

First from the Economist we have this quote on the Sovereign-Debt Crisis –

“At stake is not just the Italian economy, but Spain, Portugal, Ireland, the euro, the European Union’s single market, the global banking system, the world economy, and pretty much anything else you can think of…. Italy matters so much more than Greece because it is so vast.”

We have seen this Sovereign-Debt Crisis cause havoc with the stock-market lately, having wild swings both to the up-side and down-side. When the stock-market is selling off we have been seeing a “flight to quality” and bond prices rising causing interest-rates to fall. On the other hand, when the stock market rallies the bond market has sold-off causing a rise in rates. that’s why rates have been so erratic lately.

Here is another piece along the same lines regarding the great rates on FHA loans due to the above mentioned Sovereign-Debt Crisis thsi one is from our friends at mortgageprocessor.org

Mortgage rates fell last week as worries of sovereign defaults in Europe roiled the markets.  This week the focus has shifted from Greece to Italy. There are rumors that Italian Prime Minister Silvio Berlusconi’s government may fall apart, forcing him to resign.  In any case, rates are now near 60 year lows. Are you a renter who is looking to take advantage of the current low rate environment?

If you’re a first time home buyer with a good credit history, you might want to look into getting an FHA mortgage. The reason FHA mortgages are so popular with first time home buyers is that they only require a down payment of 3.5% of the purchase price of the home.  Many traditional sources of financing require a down payment of 20 percent or more, and it can take years to save that much money.

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