30-Year Mortgages @ 3%??
For the moment, mortgage rates have bottomed, and may be even be climbing a bit.
But, broader market forces (as they say) definitely seem to be tugging rates lower this Summer.
Brexit Financial Aftermath
There is now a stunning $10 billion-plus in negative-yielding government bonds globally (think, Germany, Switzerland, and — surprisingly, even debt-ridden Japan).
In the throes of the Brexit financial market aftermath (remember that, scarcely three weeks ago??), the U.S. 10-year bond briefly breached 1.4%,
That would be on the downside.
What all that means for housing, if such trends persist or even accelerate, are 30-year mortgage rates headed to 3% (or at least close).
In turns, that represents a potent 10%-15% increase in consumers’ purchasing power, from when rates were still a relatively “lofty” 3.6% to 3.8% just this Spring.
Give that a couple weeks to sink in, and watch what happens to housing prices.
