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A fourth week of rising mortgage rates brings them to six-month highs, Freddie Mac reports, with...

A fourth week of rising mortgage rates brings them to six-month highs, Freddie Mac reports, with the average 30-year fixed rate hitting 4.61% from last week's 4.46%. Fifteen-year fixed-rate loans climbed to 3.96% from 3.81%. Not exactly what Bernanke had in mind, so far.
Comments (3)
  • Tony Petroski
    , contributor
    Comments (6373) | Send Message
     
    My first 15-year mortgage was 8.125%.

     

    I thought I was getting a deal.

     

    From the post: "Fifteen-year fixed-rate loans climbed to 3.96% from 3.81%. Not exactly what Bernanke had in mind, so far."

     

    Are you waiting for 3.79%?
    9 Dec 2010, 11:21 AM Reply Like
  • nightfly
    , contributor
    Comments (1017) | Send Message
     
    Or is it? To the Fed and Big Bad Ben, it's all about enriching the banks so increasing yields does that.
    9 Dec 2010, 11:23 AM Reply Like
  • Dr. Poly
    , contributor
    Comments (362) | Send Message
     
    As interest rates directly change the affordability equation for homes, I would expect that this increases the likelihood of a double dip in housing which people were predicting just on the basis of foreclosure inventory hitting the market - not sure that will spill over into the broader economy. However, this is a negative for all homebuilders who will not see building tick up for years to come. This is also a negative for those trying to refinance, especially those in dicey situations of LTV. If this continues to play out, this will also further stall the healing of the economy because if you want a new job and have to relocate, selling your house and the affordability of a new one are prime concerns.

     

    This is a great unwind of the purchase of treasuries and sell them back to the fed at a handsome profit trade. At some point, the reverse occurs for the primary dealers.
    14 Dec 2010, 05:24 PM Reply Like
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