Mortgage Rates Catch a Break

Mortgage rates moved higher at a pace that was probably quicker than the average homebuyer would like yesterday.  That was part of a 4 day move leading back up from the lowest levels in more than a year (or close to them, depending on the lender).  That 4-day move could have easily been quite a bit longer, and it still could be, as long as we overlook today’s market movement.  Thankfully, it’s taken rates back in a friendlier direction.
At issue is the unexpected flare-up in British politics surrounding Theresa May’s referendum gambit yesterday.   To be fair, the gambit was unexpected, but the flare-up makes perfect sense.  Long-story short, if May is ousted (and that seems likely), it creates uncertainty surrounding a major economy and financial center.  It also makes a “no-deal” Brexit more likely, which is generally seen as detracting from European economic growth prospects.  All other things being equal, lower economic growth coincides with lower interest rates….(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.
Source: mortgagenewsdaily.comNew feed