Greece Crisis = Low Interest Rates & Opportunity
News coming out of Greece suggests their financial crisis could create more instability in the U.S. Market or with the U.S. Dollar. With the Federal Reserve (or the “Fed”) on course to raise interest rates in September, the volatility in Greece’s market has economist questioning how long we can look forward to current low rates.
While some believe the Fed isn’t overwhelmed enough by Greece’s predicament to delay a rate hike, even Janet Yellen, Fed Chair, has warned Greece is a consideration. At her June 17th press conference she said, “To the extent that there are impacts on the euro-area economy or on global financial markets, there would undoubtedly be spillover to the United States that would affect our outlook as well".
To the average homeowner or homebuyer, all this uncertainty does create an opportunity in TODAY’s low rates. While we began to see an increase in mortgage interest rates last month, concern over Greece has once again pushed rates down. These present conditions suggest that now is the time to buy, refinance to a lower interest rate or take cash out and capitalize on recent home value appreciation.