Categorized | Finance and Mortgage

United States Mortgage Rates Affected by European Debt Crisis

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Mortgage loan rates declined again last week, hitting the second lowest mark in history. Analysts are attributing the most recent decline to the latest news regarding the European debt crisis. As concerns over the debt crisis in Europe grow higher, the mortgage loan rate in the United States will likely continue to drop.

The mortgage loan rates in the United States have become very much connected to the European debt crisis, as investors are opting to move their money to United States Treasury securities. Such moves lower bond yields and mortgage rates in the United States.

The United States government recently announced that they would be artificially keeping mortgage loan rates low, though if the global investing trends continue, they may not need to have any influence at all in the mortgage rates. If concerns continue to rise regarding the European debt crisis, it is likely that mortgage loan rates in the United States will continue to drop.

Despite the following mortgage rates, many analysts are still not confident that the housing market will experience a boost in sales volume. Rates have continued to hover around four percent for a 30-year fixed-rate mortgage loan over the last few months, and sales have remained stagnant, or even decreased in a number of cities.

Analysts point to the struggling U.S. job market, and decreased consumer confidence as one of the main reasons as to why the residential real estate market in the United States has not experienced the boost that one would expect with the mortgage loan rates as low as they currently are.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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