Seeking Alpha

The average 30-year fixed mortgage rate had its largest weekly increase in 10 months, according...

The average 30-year fixed mortgage rate had its largest weekly increase in 10 months, according to Bankrate, +11 bps to 3.77%. The 15-year rate rose 9 bps to 3.03%, the first time over 3% since September when the Fed launched its MBS purchases for the express purpose of bringing down mortgage rates.
Comments (4)
  • bbro
    , contributor
    Comments (10403) | Send Message
     
    Or an additional $144 a year with most of it deductible...would have to get it to 4.52% to be an additional $1,000 a year.....
    31 Jan 2013, 07:56 AM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (5576) | Send Message
     
    One option if you want to hedge rising mortgage rates but are not ready to buy a home is to short TMF.
    31 Jan 2013, 10:50 PM Reply Like
  • bazooooka
    , contributor
    Comments (3521) | Send Message
     
    The TMF aug. puts look cheap - assuming rates have bottomed and thus the ETF can begins it's natural deterioration.
    2 Feb 2013, 07:25 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (5576) | Send Message
     
    I agree 100%. Good idea. Also, last call for anyone who wants a mortgage at silly rates. I think that it would be wise to borrow all that you can. Also, lock in whatever real estate you may want in the future: beach, lake, ski, farm, etc. The world’s best inflation hedge is appreciating assets that you, yourself, value intrinsically. In 2011-2012, we were in a flurry of real estate purchases for that reason.
    2 Feb 2013, 07:33 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs