Mortgage Rates On The Rise Working Againts Fed

Confirmed by Freddie Mac fixed-rate mortgage average on the rise. The difference from previous week .7 points. Chairman Bernake described overall rates lower than last fall, and pointed out hope of the affordable refinance.

The recent spike of interest rates, left behind some borrowers who did not use opportunity to refinance at the lower mortgage rates. As well as some banks who could benefit from attracting good mortgages but were too cautious to do so. After all, it is highly important for the fed to keep rates at low. With the current economy, mixed feelings about jobs, banks holding up to the cash and government spending, economy is at the point of slowing its recovery.

Many suggest that fed is not going to touch interest rates, not at this point. And there is no possibility to pass another economy recovery act to help stabilize the mortgage rates. So it is working against fed's plans to quick recovery.

Is there going to be a solution for the slower economy and rising mortgage rates, is there going to be a reaction to such economy state. As it was in the past, government was mostly reacting to the state of economy but not pro reacting. Some voices sounded alarm and it took government officials to respond with the great delay.

We all hope for the economy to have quick recovery, with stable employment and mortgage rates. It will take more from this administration to do it right way, not to endanger economy developments and not to hurt current economy.

With massive health care bill on the hand,Obama's administration will be forced to face stronger opposition even from loyal financial experts.

Vladimir Dubchak
Political Financial Analyst