Most of you have never heard of Cyprus until last week. If you have not taken any action to refinance yet, this could be your very few remaining opportunities.
Mortgage rates have been rising – the latest average on the 30-year fixed was 3.63% for confirming loans (Note: loan amount under 417,000) , the highest its been since the week of August 23, according to Freddie Mac.
If it’s not because of Cyprus bailout, the rates may have already been close to 3.875 to 4%, especially for the high balance conforming loan. Cyprus bailout gave people who are in the middle of refinance or have not started yet the time to catch up.
The big thing in the news this week has been the Cyprus bailout situation which is still very much a concern. Apparently the Russians have declined to help with the bailout. It is possible that Cyprus may be forced to leave the Eurozone. This may either start a domino effect for other nations, or if conditions in Cyprus become terrible after their exile, other nations may finally get their fiscal act together to avoid the same fate. These are historic times! A negative
outcome in Cyprus will very likely result in a Bond rally. But, if an agreement is reached, Stocks will benefit and Bonds will suffer.
If you have not locked rate but in the process of refinancing, seize the moment of any bond rally to lock your rate and take your profit.
If you need to refinance and not start yet, or need to get a purchase loan, get in touch with me immediately.
