Mortgage Rates Hit 15 Month High

Tony Sagami (Harvest Advisors) submits:According to Freddie Mac, the average rate on 30-year fixed-rate mortgages rose to 6.10% this week, up from last week’s 6.03%.

One year ago, mortgage rates were at 5.69%.

You’re probably sick of hearing me warning that interest rates are headed higher, so it might help for you to hear that forecast from somebody else.

Somebody like Jack Guynn, the President of the Atlanta Federal Reserve Bank.

We should continue to move toward a neutral setting for monetary policy. The Fed already has moved interest rates a long way toward a more normal level consistent with sustainable growth. By most conventional measures, however, policy is still accommodative. So I believe the continued removal of that monetary accommodation is appropriate for now.

Are you sitting on an adjustable rate mortgage? Are you invested in any long-term bonds? Are you a glutton for punishment?

Related:

• Other articles on the Seeking Alpha Network by Tony Sagami
• A list of full conference call transcripts available on the Seeking Alpha Network.

« Any opinions expressed on the Seeking Alpha sites are those of the individual authors and do not necessarily represent the opinion of SeekingAlpha or its management. »