According to various sources that monitor the current mortgage rates there is a sharp rise in today's mortgage rate, particularly in the 30 year fixed loan rate. Observers says the rise in the rates can't help to sustain the fragile recovery of the housing market, the force behind the U.S. economy. In the meanwhile Fannie and Freddie lead the financial today in Wall Street. Their stocks jumped more than 20 percent in early trading.
The alarm is already sounded by the Subprime Blogger, which writes that the in national average the mortgage interest for the 30 year fixed and 15 year fixed rates have risen sharply today. The 30 year fixed rate has reached to 5.03 and the 15 year fixed interest is up at 4.48. Meanwhile the 5 year ARM is also up to 4.05.
This direction of mortgages are not surprising. As the treasury yield has risen in December of 2009 so the mortgage rates.
Another alarm about the current mortgage rates is sounded by the experts of 24/7 Wall St. Author Douglas A. McIntyre, writes that the sharp rise in today's mortgage rates may damage the housing recovery. He question if there is a housing recovery underway, but the rise in the interest rates will surely damage the possible and much hoped for recovery.
The number of foreclosures in the United States is still very high. This fact may drive down the housing prices even further. However, there are two problems. First is that many people are having a very difficult time to refinance their mortgage. The second problem is that the rising mortgage rates can't help people to take advantage of the low house prices nationwide.
McIntyre predicts the rates going up in 2010 and the real estate markets being hurt. Yet, he does not say if the devastation may be as bad as in 2009.
Today's mortgage rates at the Bankrate.com are as follows. The 30 yr. fixed is 5.28 and the 15 yr. fixed is 4.59 in the national average.
At the Wells Fargo, the current rates, updated at 9AM EST this morning are as follows. The 30-yr. fixed rate is at 5.25. The FHA for the same rate is at 5.5. The 15-yr mortgage rate is at 4.5 and the 5 year ARM is at 4 percent.
In a related news the stocks of the nation's leading mortgage providers Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE) were up sharply after the investors learned that the government will provided what Marketwatch says "unlimited" capital support to the companies over the next three years. In the early trading they lead the financial stocks in the Wall Street.
Mortgage rates, while rising, still remain at historically low levels.
Written by Armen Hareyan
HULIQ.com
Comment and add to the story without registration, but keep the comments meaningful please. Links are not accepted.
