Skip to content

Mortgage Rates Begin To Climb

Written by

MikeMcD82

As expected mortgage rates have begun to climb.  On March 31st, as planned the Fed terminated its mortgage backed securities (MBS) purchase program after buying $1.25trn of the instruments–keeping mortgage rates artificially low.  According to the Mortgage Bankers Association (MBA), the average rate for a 30Y mortgage already climbed to 5.31%  the week ending 4/2, compared to 5.04% a week earlier.  I expect rates will continue to climb peaking somewhere between 5.5% and 6.0%, before leveling off.  This will of course but a strain on any housing recovery.  The chart below highlights the Fed’s net MBS purchases and 30Y mortgage rates:

Source: Bloomberg

Previous article

Weekend Musings: High Tech Stein Keeps Beer 'Frosty' For Days

Next article

Lost Wallet in NY (4/27)

Join the discussion

Leave a Reply

Your email address will not be published. Required fields are marked *