Greece rescued at our Expense

That's right the rescue of Greece has come at a cost to all borrowers... rates are up this morning on the headline news that Greece has been bailed out, however investors have not left our market as quickly as some might have thought they would. Currently down 5 ticks in the secondary market, all in all we are still up since trading in long term markets caught fire last week under Greece's misfortune.

Why? Point in fact Greece may have received a bailout, but the dominoes are still lined up and the wind is still blowing. Despite short term equities markets jumping quickly, investors have not left the long term markets entirely because they are not entirely convinced that this problem has been solved. It is this underlying apprehension that is currently supporting our market otherwise we would have seen larger losses and rates would have risen even further.

All things considered, with this development, the short term trend (over the next couple of days) suggests we will see rates climb slightly after which it is anyone's guess. Okay, guess may be too strong a word, we will need additional and current news to determine how the market will behave moving on.

My advise right now is lock your rate if you are happy with the rates currently offered. Right now the risk of floating in attempt to secure a lower rate than what is offered does not justify the benefit of the lower rate. Chances are rates go up for here, not down. If you did not lock last week in hopes that rates would come even lower, don't kick yourself, cut your losses and lock your interest rate in now.

Any specific questions, you are welcome to contact us with your particular questions.