Mortgage rates are soaring
- Thread starter The Kin
- Start date
More great news for the housing market:
All types of mortgages see rate increases
Thursday July 24, 1:42 pm ET
By Martin Crutsinger, AP Economics Writer
Rates on 30-year mortgages jump to highest level in nearly a year, reflecting market worries
WASHINGTON (AP) -- Mortgage rates shot up this week with 30-year mortgages climbing to the highest level in nearly a year, reflecting concerns in financial markets about the troubles at corporate giants Fannie Mae and Freddie Mac.
Freddie Mac reported Thursday that its nationwide survey showed rates on 30-year mortgages surged to 6.63 percent this week, up sharply from 6.26 percent last week. That represented the highest level for 30-year mortgages since they stood at 6.68 percent the week of Aug. 1.
http://biz.yahoo.com/ap/080724/mortgage_rates.html?.v=2
All types of mortgages see rate increases
Thursday July 24, 1:42 pm ET
By Martin Crutsinger, AP Economics Writer
Rates on 30-year mortgages jump to highest level in nearly a year, reflecting market worries
WASHINGTON (AP) -- Mortgage rates shot up this week with 30-year mortgages climbing to the highest level in nearly a year, reflecting concerns in financial markets about the troubles at corporate giants Fannie Mae and Freddie Mac.
Freddie Mac reported Thursday that its nationwide survey showed rates on 30-year mortgages surged to 6.63 percent this week, up sharply from 6.26 percent last week. That represented the highest level for 30-year mortgages since they stood at 6.68 percent the week of Aug. 1.
http://biz.yahoo.com/ap/080724/mortgage_rates.html?.v=2
If real wage growth was keeping pace with real inflation and real interest rates (debit side), this wouldn't be a problem.
Rates ARE NOT historically low once you factor in real wage growth and real inflation.
They are high and headed higher.
Save the Banks at all costs!
The Banking System owns you whether you believe it or not, whether you're a depositor or borrower, a saver or a spender...
It owns you, your children AND your government.
Thomas Jefferson's Warning To America
"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."
Rates ARE NOT historically low once you factor in real wage growth and real inflation.
They are high and headed higher.
Save the Banks at all costs!
The Banking System owns you whether you believe it or not, whether you're a depositor or borrower, a saver or a spender...
It owns you, your children AND your government.
Thomas Jefferson's Warning To America
"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."
I think it was a great question to pose when you asked if it is fair to say that as mortgage rates rise does that mean home values lower in step...
But I don't think there's a correlation there.
I am an equities trader, and a real estate investor and one thing is for certain about the dropping of real estate values:
It was overdue.
Real estate is historically a cyclical investment vehicle with an upside bias in the long term. Much like stocks, but we witnessed an artificial real estate bubble in the past 6 or so years akin to the dot com bubble in the late 90s.
The fact that mortgage rates are rising is not a direct correlation, IMO, of falling real estate prices.
Great q though! One of the best I've read in a while,
-HedgefundJim
But I don't think there's a correlation there.
I am an equities trader, and a real estate investor and one thing is for certain about the dropping of real estate values:
It was overdue.
Real estate is historically a cyclical investment vehicle with an upside bias in the long term. Much like stocks, but we witnessed an artificial real estate bubble in the past 6 or so years akin to the dot com bubble in the late 90s.
The fact that mortgage rates are rising is not a direct correlation, IMO, of falling real estate prices.
Great q though! One of the best I've read in a while,
-HedgefundJim