Foreclosures.com, a northern California investment advisory firm specializing in distressed property, said today that persistently low interest rates have postponed a surge in California foreclosure activity, but that the risk of more defaults in the near future remains.
“High demand for the 10 year T-bill is keeping yields low, and that means low mortgage rates as long as that keeps up,” said Foreclosures.com president Alexis McGee. She pointed to the fact that 28.5% of the February 11 auction of new 10-year notes was bought by indirect bidders that include foreign banks. “Both China and Japan have been heavy buyers of dollars to keep their exports to the U.S. cheap. Then they recycle those dollars back into our treasuries,” Ms. McGee said.
View this content by subscribing
Please register to unlock this content
I already have an account. Log in
