Friday, January 13, 2006

Mortgage Rates May Rise Due to China

China has recently signalled that it may diversify its investments in the US. Traditionally, China has been a large investor in US Treasury Bonds, which influences the price of mortgages as the 30 YR mortgages closely follow the US Treasury 10 Year note plus a premium.

If China backs out of buying US Treasuries, the 10 Year note yield could blossom, which could lead to higher mortgage rates. Higher loan rates could potentially power home sales forecasts, both nationally and in Southwest Florida.

Did you know you can listen to our weekly radio show in Fort Myers Florida over the Internet? You can, simply click here to Listen. You can also search for homes in SWFL using our www.Leecountyonline.com free MLS search service. Be sure to check out out Lee County Florida Real Estate Blog for current information on the Fort Myers/Cape Coral and Southwest Florida real estate market.

1 comment:

Margaret Rome said...

You have an amazing amount of good information. Thanks for sharing.
Margaret Rome
www.HomeRome.com