The success of the mortgage business is dependent upon a stable housing market, stable employment, and strong consumer confidence. So it’s a strange paradox that we love stock market meltdowns, sovereign debt defaults, natural disasters, war, political coups, and any other world-wide turmoil you can think of.
While these things don’t promote a stable economic environment, they do cause interest rates to plummet. You see, interest rates are tied to the US government bond market, which is considered an investment safe haven in times of economic turbulence. Investor’s money flocks to US treasuries when there is market uncertainty, which drives the prices of treasuries higher, and mortgage interest rates lower (that’s a paradox to explain in another blog post). This drives mortgage rates to new lows, and gives homeowners the opportunity to save a significant amount of money by refinancing their mortgage, or purchase a home while locking in at a historically low rate.
So, the next time you see a stock market collapse, a country defaulting on their debt, or citizens overthrowing an oppressive government, pick up the phone and call your local mortgage banker. It may be time for you to refinance your mortgage, or purchase a new home.
Atlantic Home Loans, Inc. NMLS#15241 www.nmlsconsumeraccess.org 50 Route 46 West, Parsippany, NJ 07058 licensed or authorized Mortgage Lender/Banker by, and does not offer its loan services or products in any states other than, the following: CA Department of Business Oversight, CT Dept of Banking, DC Department of Insurance, Securities and Banking, DE Office of the State Bank Commissioner, FL Office of Financial Regulation, GA Dept of Banking & Finance, MD Commissioner and Financial Regulation, MA Division of Banks Lender/Broker MC#15241, NJ Dept of Banking and Insurance, Licensed Mortgage Banker—NYS Department of Financial Services, NC Commissioner of Banks Mortgage Lender, PA Dept of Banking, Rhode Island Licensed Lender/Broker, Virginia State Corporation Commission License MC-3001. Atlantic Home Loans is not acting on behalf of or at the direction of HUD/FHA or the Federal Government.