Jul 01, 2016

July 2016 Mortgage Interest Rates

- originally posted July 1, 2016 -

The financial markets have seen a lot of turmoil this past week.  It's all fallout from the EU Brexit vote, which turned out to be a huge shocker, and that produced some massive ripples across global markets. Things remain unsettled heading into the Independence Day holiday, and perhaps through the next few months.

As a result of all the risks and uncertainties over the outcome of the vote, market investors scrambled to dive into their favorite safe havens,US bonds.  The surge in bond prices caused mortgage interest rates to drop like a lead ball.

There's a silver lining in all of this, and its that mortgage interest rates will probably remain at historic low-levels for months.  That's sure going to be good news for home buyers this summer!

Given the economic uncertainties facing Britain and the EU, and other countries feeling the effect of this fallout, its increasingly unlikely that the Fed will attempt to raise interest rates during their July meeting, and perhaps not even through September.  As it appears right now, home buyers should look for mortgage interest rates to remain relatively flat until all of this gets sorted out.

Till next month,

Michael Dagner

Michael Dagner is a real estate professional in Denver, Colorado.