Mortgage markets are impacted by economic developments around the world, as well as economic developments right here in the United States. One of the reasons is that the secondary market for mortgages is ultimately controlled by Fannie Mae, Freddie Mac and the Federal Housing Administration.
You may recall that in late 2011, Greece was experiencing financial turmoil. For almost three quarters, these events impacted America’s mortgage market. The correlation: every time Greece came close to reaching default, our stock markets fell and our bond markets improved. When this happened Arizona mortgage rates decreased.
Earlier, the same issues came to light in countries such as Italy and Spain. Consequentially, U.S mortgage rates were driven down. However, with reports of a higher sales volume, more positive New Home Sales numbers and elevated home builders’ confidence, mortgage rates eventually rose.
Likewise, with inflation, the U.S. currency will see a drop in its value, and this will inevitably cause mortgage rates to spike. Every week, there is new economic information which serves to drive the mortgage market either up or down. Things such as…
All of this can make it difficult to forecast just where mortgage rates are going, and whether or not now is a good time to refinance or get a new home.
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Thanks for listening and reading the Mortgage Brothers Show. Let us know if you have any questions you’d like us to answer on this podcast. You can email your questions to Tom@AZMortgageBrothers.com or Eddie@AZMortgageBrothers.com.
Be sure to ask us for a free quote on your next mortgage. We’ll personally work with you and help you through the whole process.
Signature Home Loans LLC does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. Signature Home Loans NMLS 1007154, NMLS #210917 and 1618695. Equal housing lender.BACK TO LIST