By Matthew Graham | Mortgage News Daily
Mortgage rates moved lower with more conviction to begin the week as global markets reacted to weekend events in Europe. Specifically, Greece voted to reject a set of reforms drafted by its Eurozone creditors. If you’re wondering what in the world that has to do with mortgage rates, you’re not alone. The easiest way to think about it would be to consider that more disagreement between Greece and the rest of Europe creates more uncertainty for investors. In turn, that uncertainty promotes the buying of safe-haven assets like bonds–especially when those bonds are not at ground zero. As such, US Treasuries and mortgage-backed-securities were met with a glut of demand this morning. Higher demand means higher bond prices and lower rates.
