- Mike Ochs
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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.