Dennis' Mortgage Blog

A twist on the old adage to be sure, but investors, and home mortgage seekers, need to be very wary of the Greek financial crisis and what amounts to gifts from other European nations. 

Every rumor, action, non-action, vote in Europe right now that involves Greece is causing major swings in stock markets around the world. As the stock markets jump up or down so too do mortgage rates. 

It appeared that a bailout was put together for Greece led by Germany, stocks prices and mortgage rates climbed.

Then protestors, public employees, flooded Athens and pressured politicians to not agree to any bailout with strings attached that meant workers had to work longer and have reduced benefits; stocks and rates dropped.

Then a major banking crisis was rapidly approaching whereby at least one major bank was about to collapse due to its Greek debt; stocks and rates dropped further.

Then a plan was announced by European finance ministers to capitalize and stabilize the banks--their version of TARP; rates and stocks climb.

Today the Dow Jones opened and dropped 250 points, positive news from Greece caused a major reversal and the index soared 400 points in the final hour of trading on news from Europe that appears to once again save Greece.

So the dominos push from Greece to European banks to Wall Street stock prices to Main Street mortgage rates. 

Beware Greeks getting gifts, they may look them in the mouth and figure two birds in the bush are worth more than a penny for Bernanke's thoughts.

It is a volatile mortgage rate market.  Get your number and lock in, thinking about it could cost you.

Please call me to determine how much you can save with a refinance of your existing mortgage or your purchasing power with a new home loan.