Wednesday, February 2, 2011

Mortgage Rates Rise


A sudden spike in Treasury yields drove up the interest rate on 15- and 30-year mortgages in December. Rates rose despite the Federal Reserve's efforts to keep them low and ease economic conditions by purchasing up to $900 billion in Treasury bonds. Treasury yields were propelled higher by encouraging news regarding economic growth and the prospect of a larger federal budget deficit stemming from the recent tax compromise. For the week ending December 16, the average interest rate on a 30-year, fixed-rate mortgage was 4.83%, up from 4.61% the previous week-but still lower than the average rate of 4.94% one year earlier, according to Freddie Mac. The average 15-year fixed interest rate was 4.17%-up from 3.96% the previous week, but down from 4.38% during the same week in 2009.  

Posted via email from WESTCHESTER COUNTY DISTRESSED PROPERTY INFORMATION

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