Mortgage rates at new all-time lows....

How many times can we say that? I don't know but let's all take full advantage of it while it's here!

Inquire now about a refinance or new purchase loan.

Here's some brief commentary about what's up:

The European debt crisis is back with a  major sell-off in US and global equity markets, and a move into US treasuries pushing the bellwether 10 yr note and mortgage rates to new historical lows. This week Greece’s troika of international creditors -- the European Commission, the European Central Bank and the International Monetary Fund will descend on Greece to review the debt crisis in Greece. There is now concern that Greece will fall into depression similar to the US depression in the 30s, and increasing concerns Greece will exit the EU. It shouldn’t be a shock to markets; there is little chance Greece can survive in the EU.

Nevertheless, after a couple of weeks with not much out of the region it is now back with renewed fears. The reaction is sending US interest rates to record lows and  the stock market down hard this morning.

After euro finance ministers failed to staunch a decline in the single currency with the approval of a 100 billion-euro ($122 billion) aid package for Spanish banks last week, the 3 governing bodies will seek to determine the fiscal state of Greece,  where the crisis began almost three years ago. The euro currency is crumbling, setting new lows against the dollar and the Japanese yen. The euro slipped below its lifetime average against the U.S. dollar at $1.2080. The market consensus now is that  Greece will not be able to meet the requirements set out when it got bail-out money. Over the weekend, Germany said it will not agree to reworking the Greek bailout plan. “If Greece doesn’t fulfill those conditions, then there can be no more payments,” German Vice Chancellor Philipp Roesler told the media yesterday, adding that he is “very skeptical” Greece can be rescued and that the prospect of its exit from the monetary union “has long ago lost its terror.”

The renewed concerns over the debt crises in Europe will support the bond and mortgage markets this week. However, although this morning the fear factor and concerns are at high levels, we have experienced this many times in the last couple of years. Markets will react on any comments out of the region. While Greece in the wider perspective is finished in the EU, monentary comments from the IMF, the ECB or the EU that sound more optimistic will get traders’ attention with market swings that could be severe, similar to what we are seeing this morning. That said, technically the bond and mortgage markets are increasing their bullish bias. Expect the possibility of volatile markets this week.

Until next time....