August 8, 2011 rummy

No one knows for sure what will happen next. However, we want to talk about possible scenarios.   Mortgage rates normally run parallel to the country’s Treasury bonds. If many people are buying Treasury bonds the return on those bonds decrease. If less people are interested in buying bonds, then the return on those bonds must increase in order to draw more buyers. If bond returns increase or decrease, mortgage rates normally follow. Many experts feel that the downgrade in the country’s credit rating will cause people to see greater risk and therefore be less likely to invest in our Treasury…