Mortgage rates set new record lows
As the debt ceiling drama gave way to the origins of drama, Greece and Italy. Global investors grew more concerned about Greece and Italy’s sovereign debt, which prompted money to be invested in the relative safe-haven of US Treasuries and Mortgage Backed Securities (MBS) issued by Fannie Mae, Freddie Mac, and Ginnie Mae. The yields on these securities, especially the 10-yr US Treasury Bond and the MBS with longer maturities, fell dramatically since February 2011. This translates into GREAT INTEREST RATES for existing homeowners who wish to explore refinancing, and for active homebuyers who need financing.