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U S 30-year Mortgage Rates Jump To 3-year High

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30-year mortgage rates jump to 3-year high

By Martin Crutsinger, Associated Press

WASHINGTON — Rates on 30-year mortgages jumped to the highest level in 3 1/2 years this week, driven higher by inflation worries in financial markets.

Mortgage giant Freddie Mac said Thursday that rates on 30-year, fixed-rate mortgages averaged 6.37% this week, according to its weekly survey.

That was up sharply from a nationwide average 6.24% and put 30-year rates at the highest level since they averaged 6.43% the week of Aug. 2, 2002.

"Stronger than expected gains in the manufacturing and service industries — coupled with higher labor costs — ignited inflation concerns, which led to the rise in mortgage rates this week," said Frank Nothaft, chief economist at Freddie Mac.

He said investors have begun to worry that the Federal Reserve, which has been raising interest rates to combat inflation, may not stop with just one or two more rate hikes but may actually boost rates three more times this year.

http://www.usatoday.com/money/perfi/housin...age-rates_x.htm

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California was already having problems with the old rates. This will be a big trigger for them. Given that the bubble is tighter in the UK we may see a more dramatic pop than the US when it finally goes. The B o E's decision to do nothing while the rest of the world takes action may reflect the fact that they do not know what to do. The old "if in doubt do nowt" policy.

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Mervyn was right when he said house prices were a matter of opinion. That opinion seems to have changed dramatically in the US :D .

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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