Thursday, August 2, 2012

The end to bias down in Mortgage Rates - Cal Haupt

With the euro zone issues compounding the post recessionary recovery, the flight to safety provided a bias down in US mortgage rates.

Now ECB President, Mario Draghi, has potentially put the floor in with their mandate to maintain price stability.  Mr. Draghi has made it very clear the euro crisis would not destroy the currency and the ECB would make outright purchases of debt to solidify their objective.

For those that monitor rates and consumers waiting for lower rates, you may have noticed the tick up.  Food inflation due to the heat, core inflation from the US stimulus activities, and the floor put in by Mr. Draghi and the ECB may be the catalyst for a trough in mortgage rates and the turn north.

In my opinion, the music is slowing down for the bottom of the bias down in mortgage rates.  If the benefit to refinancing makes sense for your family, now may be the time to take advantage of the events that got us to this historic low.

Cal Haupt
Chief Executive Officer, Southeast Mortgage

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