So what's going on with rates ?????

Right now, rates are incredibily low. We thought at this time last year, we were seeing the bottom. Everyone was in a mad scramble to refi to historically low rates. Now, a year later we are seeing rates at even lower levels. And this, at a time when we thought rates would begin to rise, following the government subsidies of the last year.

Well, it all goes back to the recession that we are supposedly coming out of. We seem to go from euphoria to fear and panic, then back again, from week to week. The stock market is going thru a funk now and the same in happening with interest rates on mortgages.

So the real question is what is triggering the fear? Well, it's pretty simple. As some of the smaller European countries like Greece, Spain, Portugal, and Italy have racked up huge government debts, there is growing fear about their ability to repay. In Greece, the government workers are having to make huge concessions to the government in order to keep the government out of bankruptcy. Even with these concessions, other European countries are having to bail out these smaller countries. This extra tax load on the citizens of Europe could trigger a second wave of recession. It's too early to tell, but some folks are nervous. But, in any case, big debts, racked up by governments are not good. (Oh and did I mention that the US debt has more than doubled in the last year........)

But, in any case, if you need a refi, now is a great time to get one. Give us a call at Neighborly Financial (www.NeighborlyFinancialMortgage.com)