The Mortgage Reports

Last week's terrorist attacks in England barely moved markets in a surprising change from past attacks worldwide.

Even as the country remains in "Criticial Alert" status, money is flowing to the U.K. on remarks from the Bank of England, and a foreshadowed interest rate increase.

In the past, terrorism was considered a threat to financial markets and one that created Safe Haven Buying.  Right now, not so much.  So, one of two things is happening:

1. Markets have already priced in the threat of terrorist attacks on the nation
2. Markets are unconcerned with threats and only concerned with real action and damage

Either way, the global non-reaction should change our perspective of how mortgage rates will respond if the United States faces a similar threat in the future.

Source
Country on highest alert after carnage averted
The Sydney Morning Herald
James Button
July 2, 2007, 6:29 A.M.
http://www.smh.com.au/news/world/britain-in-grip-of-terror/2007/07/02/1183228964665.html

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Dan Green is an active loan officer. Reach Dan via email at or call toll-free to 877-DAN-GREEN.