What Everybody Should Know About Europe and Mortgage Rates
This may be the most important week Europe has had since 1999. Mortgage rates currently float unchanged as the world waits, and hopes for, a big deal to emerge from the EU summit on December 8-9.
Italy came out with a new $40.2 billion austerity package on Sunday, while Germany’s Angela Merkel and France’s Nicolas Sarkozy announced that a Franco-German agreement has been completed for the EU summit to consider.
Everything seems to be in place for a large deal, but with 27 EU members with different political views having to agree on one financial plan, it may be a dream to see a big deal emerge this week from Europe. In addition, anymore austerity measures like Italy’s could add additional strain to the shaky European economy.
Mortgage rates should continue to float this week as everyone waits for Europe, however you shouldn’t wait too long to lock a rate for your home loan. Rates are at unheard of lows this week and should be capitalized on quickly to lock the lowest rate. These numbers could change, and change quickly, once Europe comes out with a decision.