"Gonna keep on tryin' till I reach the highest ground." Stevie Wonder. And US Bonds (including Mortgage Bonds, to which home loan rates are tied) are continuing to reach for the “highest ground” or best levels ever. Read on for details.

Provided by Rob Turner, Southern Trust Mortgage - June 11, 2012




Last week, Fed Chairman Ben Bernanke was mum about another round of Quantitative Easing (QE3). This put a pause on the Stock rally we saw midweek, to the benefit of the Bond Markets and home loan rates.


Also helping Bonds and hurting Stocks was a threat by Credit Rating firm Fitch, who said that the US may lose its AAA rating next year unless Congress comes up with a credible plan to significantly cut the budget deficit. And Fitch didn't stop there. They downgraded Spain three notches to BBB, which is just two notches above junk status!


The lack of confirmation of QE3, the US debt downgrade threat, and the escalating drama in Europe caused a "risk-off" trade or flight to safety into the US Dollar. This means US Bonds are being purchased as a safe place to "park" money, and this is helping Bonds and home loan rates reach for their best levels. And while that’s great news for homebuyers, it is also important for our economy to strengthen and improve. Last week’s economic report calendar was light, though we did see a glimmer of good news as the latest weekly Initial Jobless Claims Report showed its first decline since April.


The bottom line is that now continues to be a great time to purchase or refinance a home, as home loan rates are reaching for historic lows. Let me know if I can answer any questions at all for you or your clients.




Find Your Home

Design A Home