Posted To: Mortgage Rate WatchMortgage rates stayed steady at the lowest levels in more than 3 weeks as financial markets are still accounting for additional risks relating to Turkey. Simply put, Turkey is in the midst of a debt/currency/banking crisis and investors are worried about some sort of domino effect among banks that are heavily invested in Turkish banks. All this is worth a bit of “safe-haven” demand for US Treasuries, which offer essentially risk-free returns and a liquid place to park money temporarily. When investors buy more bonds–all other things being equal–it causes bond prices to rise . When bond prices rise, investors are technically willing to accept lower interest payments, and it’s that part of the equation that speaks to lower interest rates on US Treasuries and mortgage rates. Bottom line: drama…(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Michael Ayoub, Author NMLS ID 6631