Mortgage Rates in Denver Colorado - By RJ Baxter First Mortgage Corp
FEAR
That is the word driving the markets right now. Fear of global collapse of markets and governments is driving money into US bonds to the tune of over $140 billion in foreign investment just last week.
Remember when the FOMC mortgage-backed security program ended over a month ago? There was fear then that the decreased demand in treasuries would drive mortgage rates up. Well, the uncertainty in the world economy has continued to drive demand but in the form of foreign (and domestic) investment into treasuries, as opposed to government investment. This has caused mortgage rates to fall considerably, and mortgage rates now sit at levels we haven't seen since last year.
What is this fear I am talking about? If you have been reading my blog and other market news sources, it is no secret that Europe is in trouble. Government debt in some countries in Europe, and Greece specifically, as been devalued to the point where there are governments (yes, governments) which are nearing bankruptcy. The effect of entire countries going bankrupt would have global consequences as almost every country is inter-twined with others with investment in their debt (bonds).
The implications of governments going bankrupt will have catastrophic consequences and is causing investment in the safest channels- treasuries and commodities (Gold is at an all-time high). There is talk of the EU falling apart. Although this is all bad for the world economy, it is great for mortgage rates.
Today, mortgage rates continued their nose-dive on poor manufacturing data. Tomorrow will bring inflation numbers which will definitely be a market-mover one way or the other. In addition, as news continues to break on the European crisis, the markets will react. Volatility is high.
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RJ Baxter First Mortgage Corp
Branch Manager
303-670-0137 (direct)
27902 Meadow Drive, Suite 120
Evergreen, Colorado 80439
