12/06/2006

Why Are Interest Rates Staying Low?

In a word, more or less, it's foreign investors in bonds. Mainly from Japan and Hong Kong, who comprise about 52% of all Treasury values. The demand for U.S. Treasury bonds has kept their prices up, and mortgage interest rates down (the first affects the second). Foreign investors find stability here they don't find in their own countries, and for you the buyer, that means your 30-year interest rate is about 30 percent lower than it might be otherwise. Read the article for more on this relationship, and remember that it's giving you still a very great opportunity to buy as mortgage interest rates stay much lower than predicted for the last few years.
See a property search at my other website.

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