Posted To: Mortgage Rate WatchMortgage rates fell modestly today, and thus managed to avoid heading any closer to the 7-year highs just overhead. Underlying bond markets benefited from concerns about Italy’s stance on the Euro currency based on one Italian official’s comments. Those were later characterized as “just one man’s opinion,” thus not having a big, lasting impact on rates. To understand what’s going on here, first consider that interest rates are based on supply and demand in the bond market. The more that investors want to buy bonds, the lower rates go. When something threatens the stability of some major world economy (like the European Union could be somewhat threatened by Italy moving back to its own currency), investors tend to buy more bonds of safer haven countries. Ultimately, the European news wasn’t…(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