Mrcauser’s Weblog

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Told you so……..

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Really piss off the “green shoots” crowd. Better unlimber a new plan. Every increase in rates takes out thousands of potential buyers. No one works, or lends money for free.

Except the Obamama crew. Of course,  they’ll just steal the money from the working stiff.

Mortgage Rates Hit Seven Month High

So much for the low rates; the popular 30-year fixed averaged 5.59 percent this week, up from 5.29 percent a week ago, but still better than the 6.32 percent seen a year ago, Freddie Mac reported today.

The last time it was higher was the week of Thanksgiving, when it averaged 5.97 percent; it will likely surpass that level by next week the way things are looking.

The 15-year fixed fared no better, rising to 5.06 percent from 4.79 percent, though still below its year-ago average of 5.93 percent.

“Mortgage rates followed the increase in bond yields this week as the May employment report showed that the economy lost fewer jobs than the market consensus had expected,” said Frank Nothaft, Freddie Mac vice president and chief economist.

“Revisions to the jobs report for earlier months also showed the job loss was not as large as early estimates had indicated: March and April figures were revised to add an additional 82,000 jobs to the work force. As a result, federal funds futures rose after the report, signaling that the market expects the Federal Reserve may raise its benchmark rate sooner rather than later.

Good news often lifts interest rates, so the Fed is having even more trouble reining them in, which could lead to subsidized mortgage rates if they still believe low rates is the solution here.

Written by mrcauser

June 14, 2009 at 5:40 pm

Posted in Uncategorized

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