Europe's pain is us homeowners' gain

The threat of a debt default by Greece and other European countries has created financial turmoil for investors, banks and government officials. It’s also provided a boon to U.S. homeowners.

Long-term mortgage rates have been drifting to their lowest levels of the year, sparking a new wave in mortgage refinancing activities, industry experts say.

The reason? Despite the anxiety over debt talk brinksmanship in Washington, investors have been flocking to dollar-based investments including U.S. Treasuries, because euro-based securities seeem riskier. Even as a potential U.S. default looms, the odds seem lower than a default in Europe. It’s like living in the nicest house in a bad neighborhood.

Investor fears about Europe were stoked again Wednesday after the head of the European Commission gave an an unusually somber warning to EU leaders, saying that if they don't find a convincing solution to Greece's debt crisis at Thursday summit, the global economy will pay the price.

Source: MSN.com