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30-year mortgage rate at 2-year high

By Associated Press

LAST UPDATED: 07:36 a.m. HST, Jul 11, 2013

WASHINGTON » The average U.S. rate on the 30-year fixed mortgage rose this week to 4.51 percent, a two-year high. Rates have been rising on expectations that the Federal Reserve will slow its bond purchases this year.

Mortgage buyer Freddie Mac says the average on the 30-year loan jumped from 4.29 percent the previous week. Just two months ago, it was 3.35 percent — barely above the record low of 3.31 percent.

The average on the 15-year fixed mortgage rose to 3.53 percent from 3.39 percent last week. That's the highest since August 2011.

Chairman Ben Bernanke has said the Fed could slow its bond purchases this year if the economy strengthens. The purchases have kept rates low. The yield on the 10-year Treasury, which mortgage rates typically track, has been rising.

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Maneki_Neko wrote:
Consumer is getting raped by the financial folks again. Bernanke said that QE will continue so rates should be back at the 3.25% - 3.5% level. Banks borrow the money at 0.25%.
on July 11,2013 | 08:17AM
HD36 wrote:
In 2007 the Federal Reserve balance sheet was $800 billion. By the endo of 2013 it will be $4 trillion. Can anyone point to a time in history where a central bank unwound $4 trillion dollars? It's never been done and can't be done without catastrophic economic consequences.
on July 11,2013 | 08:59AM
tiki886 wrote:
Obama's flunky, Tim Geithner, Secretary of the Treasury has been printing money in the form of creating Tbills for the Feds to buy which artificially lowers mortgage rates. That also has the effect of hiding the true rate of inflation by devaluing or (debasing) the US dollar and shackling our ability to export goods because it is too expensive for foreign companies to buy.

When you "unwind" all the money that Geithner has been printing, we'll have massive inflation, perhaps hyperinflation. I remember how Jimmy Carter skrewed up our economy and we ended up with a prime rate of 21.5% and mortgages rates at 18.50%.

We need to keep Democrats, Liberals, Progressives, Socialists and Communists away from our national purse strings. They has no concept of how to create wealth and maintain it.

on July 11,2013 | 11:24AM
HD36 wrote:
Yes, Paul Volker the Fed Chairman had to save the dollar by jacking interest rates up. If they even revert to their historical norm of 7% on the 10yr, the interest on the national debt would be about $1 trillion. Our net revenue is about 2.5 trillion. Imagine the massive cuts.
on July 11,2013 | 04:30PM
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