ePicketFence.com Blog

AS RATES RISE, SHOULD THE GOVERNMENT GET OUT OF THE MORTGAGE-BACKING BUSINESS ? WSJ Fri. Feb 11, 2011 – Rates rise above 5% for the first time since last spring. The latest rate for 30-year, fixed-rate mortgages is 5.05%. This rate increase reflects positive news: Rates are rising because there are signs that the recovery is strengthening. As the economy gains steam, investors demand higher rates to compensate for an expected uptick in inflation. And, if the economy can generate stronger job and wage growth, higher rates may not be a problem for housing. By at least one measure, housing affordability has returned to its levels before the housing boom collapsed. The run-up has been unusually swift. The national average mortgage rate has jumped to more than 5% from a record low of 4.17% in just three months, according to Freddie Mac data. The rise should kick people who have been sitting on the fence into some immediate action. In response to these developments, on Feb. 11, 2011, the ... Tags: Untagged Read More