Europe’s pain is US homeowners’ gain
The threat of a debt default by Greece and other European countries has created financial turmoil for investors, banks and government officials. It’s also provided a boon to U.S. homeowners.
Long-term mortgage rates have been drifting to their lowest levels of the year, sparking a new wave in mortgage refinancing activities, industry experts say.
The reason? Despite the anxiety over debt talk brinksmanship in Washington, investors have been flocking to dollar-based investments including U.S. Treasuries, because euro-based securities seeem riskier. Even as a potential U.S. default looms, the odds seem lower than a default in Europe. It’s like living in the nicest house in a bad neighborhood.