Iran conflict pushes rates on VA loans lower!
3/29/2007
Political unrest in the middle east this week, with the capturing of British sailors has had an indirect effect on mortgage rates. Mortgage rates on VA loans have fallen this week to a new low. Many or our approved lenders are offering va interest rates as low as 5.25% yet again. (fixed rate for 30 yrs). Many veteran home owners/buyers often wonder what causes interest rates to rise and fall. This Iranian conflict is a great example. When there is unrest or uncertainty in the economy, investors begin to put their money into safer investments than publicly trades stocks etc. One safe place investors will put their money, is into US TREASURY BILLS. This recent invesment increase into treasuries is making VA home loan rates and other mortgage rates across the board to go down. Understand that mortgage companies and banks alike set their interest rates of of the US treasury market and at time other indexes also. So if you are a va home owner or future buyer wondering when a good time to get a loan would be; then keep your eye on the 10 and 30 yr treasury yeilds. As the treasury yield falls so will interest rates on VA loans. (yields and prices move in opposite direction. when the treasury price is high, then the yield will drop.) Please contact a representative on LowVARates.com for more details.
