Just two short weeks ago mortgage rate trends were definitely in a downward slope. In the middle of May rates were around 4.8% and now they are all the way back up to 5.29% and likely to go much higher. As Bob Pasani on CNBC said, “folks, rates are going back up there is nothing you can do to stop it.” This does not seem like good news for the housing market but maybe it will help to deflat prices even more which will give buyers an incentive to actually purchase a home.
I have yet to read what President Obama says about this but it is likely that he is not too pleased as he wants to give the lowest mortgage rates possible to the people. If rates continue to rise, it will be very intresting to see if there is any government intervention to slow the rising of rates.
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It is not any surprise to me, I requested a refinance when rates were 4% which was in March. One excuse after another (even after the loan was approved), I am still waiting for the closing and now I have been offered 5 1/2 percent and they refuse to lock. We found my paperwork on a clerk’s desk with no action taken three weeks ago at the bank. Although that clerk is no longer there, I am the one who is suffering. Still know word on when it will close. At some point I am going to have to say “NO” because it will not be cost feasible for me to give them the equity and I come out with nothing. What is interesting is the banks get 0% money give loans at 4.75% to us and it rising yet only give 2% in our saving account. Now who are the crooks here? So the average tax payer pays three time (taxes for stimulus, over% on loans, and small, measily return on savings, etc.) Obamanomics is how to screw you from your money.
More money for the banks amd none for the People.