PIGS Financial Uncertainty Good News for U.S. Homebuyers

If you’ve noticed a recent drop in mortgage interest rates, thank the PIGS’ (Portugal, Italy, Greece and Spain) troubles, which are causing jitters in the globe’s equity markets.  Seeking a safe haven, investors are putting their money into U.S. Treasury notes.  Because mortgage interest rates tend to rise and fall with 10-year U.S. Treasury note yields, this translates to good news for people contemplating a home purchase.  Freddie Mac noted that the typical 30-year fixed-rate mortgage fell to 4.78 percent recently, down from 4.84 percent just a week earlier.  The record low of 4.71 percent occurred in 2009.

According to the Mortgage Bankers Association, homeowners are refinancing at a rate not seen since last fall.