Markets & Economy

Gathering storm overseas taking mortgage rates down

If Europe does not save itself, Fed will be fighting deflation again

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

The financial world is back on a familiar precipice: A giant global-regional economy is on a cusp, all waiting to see if its government will intervene. This time it ain’t us -- it’s Europe, again -- the shock waves for the moment beneficial to the U.S. Mortgages are on their 2014 lows, near 4 percent, taken down by the U.S. 10-year T-note now 2.31 percent, itself taken down by a new low on the German 10-year, 0.845 percent. One more inch down and long-term U.S. rates can fall another quarter-point quickly. Not a prediction, but a middling probability. The immediate push toward this edge has been a new European recession, this time including Germany. Euro foolishness has been clear for several years, poor-productivity nations bolted to the uber-productive German hive and its Deutsche-gelt standard. The others so love having German money in their wallets that they’ll tolerate 50 percent youth unemployment and German demands to adopt German behavior. In return, Germany h...