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I’m sure you have been hearing about the debt crises in both the United States and Europe by now.  If you haven’t, I’m willing to go out on a limb and say that you either A.) live under a rock, B.) do not pay attention to the news, C.) do not read the Zing! Blog, or D.) all of the above.

With the super committee failing to reach an agreement on a solution for the debt crisis, and European governments changing left and right, the impact on the stock market was felt by investors immediately.

The effect on mortgage rates has been intriguing as well.

We already know that mortgage rates have been at or near all-time lows for the past six weeks or so.  Ever since dropping to an all-time low of 3.94 percent in early October, rates have somewhat plateaued around the 4.00 percent to 4.10 percent range since then.

It is easy to argue that the crises in the eurozone and the United States have been a direct contributor to this.  Investors are hesitant to invest in the short term with a directionless market, and they have been more inclined to invest in long-term bonds because treasury bonds are up.

Especially as a result of Europe’s inability to figure out their political challenges, and anger, angst and fear emerging after the super committee’s failure to figure out a way to cut the deficit, expect to see mortgage rates remain the same or fall even lower than they have been over the next few weeks.

Additionally, treasury 10-year note yields traded at nearly the lowest they’ve been in six weeks, and they have a direct relationship to 30-year mortgage rates, according to Bloomberg.

There really are only two things that you can count on right now with the market in a frenzy.

The first being investors having regular heart attacks because no one can really figure out what is going on with the market, nor what can be done to save the United States from falling into a major, major funk.

The second is the fact that mortgage rates are going to stay at or near all time lows.  Fox Business Network explained it well by saying “You’ve got the Federal Reserve trying to keep rates low, we’ve got a weak economy, and now we’ve got a flood of money coming from Europe escaping from the eurozone, which is collapsing.”

Eventually, Europe’s problems and our budget issues will get fixed.  When that happens, you can probably kiss these amazingly low rates that we’ve been enjoying for the past year goodbye.

I’ve said it before and I’ll say it again – there isn’t a better time to get locked in for a 30-year fixed mortgage or to refinance than right now.

Seriously.

Stop reading this and start talking to one of our Home Loan Experts!

Eric Mally is a writer for Quicken Loans, an amazing place to work.  Find out more about being a part of our team at Quicken Loans and learn how we Amaze our clients.

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