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Interest Rates Improve After Obama Victory

By Kerry Lucasse |

 

Mortgage Interest Rates Improve After Obama Victory

Interest rates improve after electionTwo major factors were positive for mortgage rates this week. President Obama won the election, and concerns about Europe increased. As a result, mortgage rates ended the week lower.

The conventional wisdom was that an Obama victory would be positive for bonds and negative for stocks, and this was in fact the reaction in financial markets.  Obama supports keeping Fed Chief Bernanke’s bond-buying policy in place, which is very favorable for bonds. In addition, Obama was considered less business friendly than Romney, and that, along with the risk of higher taxes on dividends and capital gains, caused investors to sell stocks and buy bonds.

Nearly all of the news out of Europe was negative this week. European Union (EU) forecasts for economic growth for the next two years were downgraded more than expected, and EU officials warned of greater downside risks. German economic growth data fell short of consensus forecasts. Greek leaders passed a series of austerity measures required to receive additional aid, but widespread riots and protests took place during the vote. Concerns about Europe cause investors to shift funds to safer assets, including US mortgage-backed securities (MBS).

– A special thanks to Damian Cook at Assurance for providing this Weekend Update!

 

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Current Interest Rates:

30 Year Fixed: 3.375%
15 Year Fixed: 2.75%
7/1 ARM: 2.625%
30 Year FHA: 3.00%

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POSTED BY:

Kerry Lucasse | Home Marketing Specialist and Team Leader for the Nest Atlanta Real Estate Group |NestAtlanta.com

404.432.1844 (c) | 404.281.6350 (b) | Ian Marshall Realty – Intown office

 The Nest Atlanta Real Estate Blog  - Copyright 2006 – 2013 by Kerry Lucasse and the Nest Atlanta team with Ian Marshall Realty – Intown Atlanta.   Information deemed reliable but not guaranteed.  If you need assistance with Intown  Atlanta real estate, Kerry Lucasse and the Nest Atlanta Real Estate Group are always available to assist you with your residential real estate needs!

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