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Thursday brought the much-anticipated policy announcement from the European Central Bank (ECB).  While our focus remains on mortgage rates in an entirely different continent, major goings on in European markets almost always have an effect on the equivalent U.S. markets. 

When it comes to rates, the market of choice is bonds.  ECB officials unveiled a new bond-buying program that will add demand for certain European bonds.  All other things being equal, excess demand for bonds results in lower rates.  Lower rates in Europe spill over to lower rates in the U.S.