by Bill McBride on 7/24/2008 11:26:00 AM
Thursday, July 24, 2008
From MarketWatch: Freddie Mac: 30-yr fixed-rate mortgage up on inflation woes The 30-year fixed-rate mortgage average was up to 6.63% from 6.26% last week.
"Market concerns about rising inflation, further weakness in the housing market and greater probability that the Federal Reserve will raise short-term rates this year all combined to push mortgage rates higher this week."The ten year treasury yield has been rising, plus investors are concerned about MBS.
Frank Nothaft, Freddie Mac's chief economist
BTW, the housing bill now goes to the Senate and will probably be signed into law pretty quickly: House Approves Sweeping Effort to Help Housing
The White House, citing an urgent need to restore market confidence in the two mortgage giants, Fannie Mae and Freddie Mac, said President Bush would sign the measure despite his opposition to the inclusion of nearly $4 billion in grants for local governments to buy and refurbish foreclosed properties.It will be interesting to see if the spread between the 30 year fixed rate mortgage and the ten year treasury declines after passage of the housing bill.
Mr. Bush’s support assures that the bill will become law after final passage by the Senate, possibly on Saturday.
Posted by Bill McBride on 7/24/2008 11:26:00 AM