Sunday, February 03, 2008

Mortgage Interest Rates UP!

Bankrate.com reports that mortgage rates were up for the week ending January 30, "The benchmark 30-year fixed-rate mortgage rose 31 basis points, to 5.88 percent ... One year ago, the mortgage index was 6.42 percent; four weeks ago, it was 6.14 percent."

Why up? Bankrate.com says "Depending on whom you ask, you'll get a number of explanations of why mortgage rates are going up while the overnight rate is going down. One reason might be that investors are reacting to the Fed's rate moves by selling bonds and buying stocks. The reduced demand for bonds makes their yields go up, and mortgage rates follow."

To read more: Bankrate.com mortgage rates

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