So what were the results of the EU Summit? Leaders agreed to a new, tighter “fiscal integration” across the Eurozone. This means that a new treaty will be drafted, setting guidelines such as annual budget deficits being limited to 3% and failure to meet guidelines like these would automatically spark disciplinary procedures. As expected, Germany was the winner in the negotiations as they demanded a tighter fiscal union in lieu of firing up the printing press and buying troubled sovereign debt. So what does all of this mean for home loan rates here in the US? It’s important to remember that when our economy is struggling and economic reports are less favorable, our Bond Market usually benefits as the investors seek a safe haven for their money. Since home loan rates are tied directly to Mortgage Bonds, our home loan rates are sometimes at their best when our economy is struggling. In a way it makes sense…in times of economic struggle, good home loan rates can help kick start our economy in other areas. Though our economic reports have been improving of late, the Bond markets – and therefore home loan rates – have continued to benefit from the uncertainty in Europe, as investors have been staying put in the relative safe haven of US Bonds ! That’s why now remains a great time to nuy a home or investment property with home loan rates still near historic lows.
How will the EU Summit affect Home Loan rates?
Posted on December 14, 2011 at 6:21 pm Sue Lunsford