May 21, 2010
Well, the word this week is pessimism. Aside from a slight positive blip on Wednesday, global markets took a beating on continued fears about the European Union’s ability to effectively deal with its debt woes. This also provided a catalyst for a drop in Asian markets with concerns over exports to Europe and the United States. To make matters worse, an unexpected increase in first time unemployment claims fueled fear in investors that the recession is far from over. Finally, the passing of new sweeping financial regulations in the US Senate added additional fuel to the fire by creating concerns that the regulation will stifle financial innovation and hamstring the ability of financial service providers ability to maximize profits.
All the aforementioned bad news once again created a flight to quality and a deluge of money poured back to safer investments such as US Treasury Bills. This, once again, provided significant downward pressure on mortgage rates. Rates steadily decreased throughout the week; ending yesterday at 2010 lows. If you are waiting for an opportunity to refinance, I would say it has come. If you are currently buying a home and trying to time the market for your rate lock, I would also recommend locking.Email This Post To a Friend.