Bonds Rally
Bonds are rallying over concerns about the Greece crisis and what the overall effect will be in the other European countries. This is good news for the fixed term mortgages as it is creating a larger spread for our lenders and will help stabilize our mortgage rates which recently have increased due to the lack of stability over in Europe.
Whenever we see a spike in rates it typically means that the increases are short lived. While I do not anticipate a big drop in rates the fixed rate are likely to come down a bit if the bonds continue to rally. We are also in May and many investors will leave the equity markets and sit on the side lines until late summer / fall. If these investors go into bonds the downward pressure could continue.
Whenever we see a spike in rates it typically means that the increases are short lived. While I do not anticipate a big drop in rates the fixed rate are likely to come down a bit if the bonds continue to rally. We are also in May and many investors will leave the equity markets and sit on the side lines until late summer / fall. If these investors go into bonds the downward pressure could continue.