Wednesday, Jul 23, 2008
This will have an influence on UK mortgage rates
BBC Business: US mortgage rates increase again
The cost of taking out a mortgage in the US has climbed again due to fears over the fate of two huge lenders, according to The New York Times. The interest rate on an average 30-year fixed rate mortgage rose to 6.71% from 6.44% on Friday, HSH Associates says.
And rates on loans of $729,750 or more hit 7.8%, the most since December 2000. The rate rises come as the US is trying to secure the future of troubled government backed lenders Fannie Mae and Freddie Mac.
Posted by jack c @ 04:58 PM (595 views) Add Comment
5 Comments
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1. paul said...
No pain, no gain.
One of them should be left to fail.
2. jonb said...
That's almost as high as the rates here, despite a much lower base rate.
3. martin said...
"One of them should be left to fail"
If their circumstances were due to their own actions then I would agree, however, Fannie and Freddie just as much victims of the wider greed of the brokers who origionally manipulated the mortgage market. After all, Fannie and Freddie would generally only lend to the prime markets. I say nail the w**kers who caused this in the first place, greedy home owners, EA's, and reckless banks willing to lend stupid amounts to idiots that knew in the long run could not afford them.
I dont work in any financial capacity and so may not understand the situation in as much detail as most others on this site however, the general public (and I include all who post on this site) would sell for as much as you could if you thought you would get the money. So to the origional point, "One of them should be left to fail" why? As a lesson to others? As scape goats? No, blame whoever instigated this and work upwards, if that ultimately means that Fannie and Freddie get fingered then so be it, but at least they will all know its on the way.
4. plato said...
Yes Well, they chopped the IRs to help the Banks and the Banks stuffed their customers. Stimulated the Banks not the Housing Market. Still hasn't worked though. They really don't care what happens to the Home Owners as long as the Banks and all their Mates don't go down with them-------------- Sound familiar?
Someone's got to pay for it,haven't we !
Still won't work though ! Big Crash coming, across all markets.
5. alan said...
Lots of banks will fail because lots of credit was given that shouldn't have been given.
The only question is: who pays? meanwhile the US government information system is saying "its all OK".
If it was the UK, would it be acceptable to make the taxpayers pay?
Would you want to pay for all the money the top bankers took out of the system? Is it time to write to MPs yet?