by Tim McLaughlin, VP Weichert Financial Services
‘A couple of weeks back, we spent some time talking about the situation in Greece, the impact on the European community, and the global economic impact both here at home and abroad. What we have seen transpire in the two weeks since is a broad-based rally in the Fixed Income sector, as investors around the globe look for a safe haven for investments and cash until this situation simmers down and settles in.
When investors look for safety, the safest instrument they flock to is US Treasuries. Next on the pecking order: Mortgage Backed Securities (MBS). And over the past two weeks, there were is a lot of investors looking for safety given the performance of these two asset classes.
There was much concern (and longer term, there still is, to some degree) about what would happen to mortgage interest rates once the Fed and Treasury halted their MBS purchase program at the end of March. What we have seen transpire over the past six weeks is international concerns driving a lot of money both off the sidelines and from other investment classes and into both Treasuries and MBS investment vehicles.
The good news is that 30 year fixed rate mortgage rates are back into the high 4% range, 10 and 15 year fixed mortgages are in the low 4% range, and hybrid ARM’s are in the high 3% range with points paid. The not so good news: no one is sure how long the rally will sustain, and how long rates can maintain these low levels.
So if you are in spring purchase market, or haven’t refinanced yet, this may very well be your last call. Weichert Financial can help you capitalize on this scenario..ask us how.