As crazy as it sounds, bad news is good news for interest rates. The continued weak economic forecast in Europe is helping keep our mortgage interest rates at historic low levels. The budget issues with Spain, Greece, Italy etc have investors flocking to a “safe haven” and that would be good old US treasuries. Additionally Fed chief Ben Bernanke stated yesterday that the Fed intends to keep interest rates at these low levels through 2014. That is good news for those that have adjustable rate mortgages and home equity lines of credit.
April 26, 2012