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Europe Dominates Financial News & Low Mortgage Rates

01/26/2015

Mortgage rates saw heavy volatility this week, finishing the week close to where they started, as the European Central Bank announced an new round of quantitative easing in which they will buy 60 billion Euro of sovereign debt bonds from Euro area countries in an attempt to stop deflation and boost the region’s economy.

The official announcement by ECB President Mario Draghi on Thursday of the 60 billion Euro a month program came as a bit of a surprise to markets, as most economist had projected that the program would be at 50 billion Euro a month.  The announcement caused quite a bit of volatility in bond prices, as markets continue to digest the effect the program will have not only on the European economy, but the global Economy as a whole.  The bond buying program is opened ended but will have a target end date sometime in late 2016.  This is also the first time that the ECB will buy sovereign debt bonds from EU member countries, mirroring the Fed QE program that came to an end last year.

Mortgage rates remain near historic lows and currently support both refinance and purchase opportunities.  Contact me for current rates at michael.borodinsky@caliberhhomeloans.com.

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By: Michael Borodinsky

Vice President/Regional Builder Branch Manager | Caliber Home Loans

Call Michael: 732-382-2654

Email Michael: michael.borodinsky@caliberhomeloans.com

 

 

 

 

 

 

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