The good news about all the bad news, is that mortgage rates are near an all time low, and it gives you an opportunity to refinance your loan and get something good out of all the bad news.
Bad News: -Greece, Portugal, Ireland, Italy, and Spain are all experiencing debt problems and need to be bailed out by the rest of Europe. How long will Europe keep doing this, and can they afford to do it?
- Washington is not creating simulative fiscal policies, that will help our unemployment and/or deficit problems. How and when will our economy recover?
- Japan is still recovering from their earthquake, tsunami, and nuclear problem. When will Japan start to create car parts again and buy goods?
- Will the rest of the world be able to sustain our corporate earnings from global sales, and keep the stock market up?
Good News: All these fears create a flight to US Treasuries and US Mortgages backed by the US, and drive rates lower. Take advantage of these lower rates now, while they are still at these low levels.
Bill Godfrey – EVP, Capital Markets