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U S Interest Rates Skyrocket On News

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May 04, 2006 12:41 PM ET

Rates on 30-Year Mortgages Climb

All Associated Press News

WASHINGTON (AP) - Rates on 30-year mortgages climbed this week, hitting their
highest point in nearly four years,
a development that will be weighed by people thinking about buying a home or refinancing the one they own.

Bond yields going up sharply:

Bid-Asked Change Yield

2-Year Note 99.28 -.282 dn .01+ 4.941%

5-Year Note 99.126-.13 dn .052 5.013%

10-Year Note 95.00+-.01 dn .10+ 5.154%

The US will need to keep hiking to prevent the Euro pricing itself out of business as exports are crippled--or will the US let the Euro price itself out of competitiveness?? Tough place to be when an IR hiking war is beginning.

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This is an article about 30 year mortgages.


Apparently they have 'skyrocketed' by 0.01% in the last week.

If they keep skyrocketing at this rate for a year they will go up 0.52% in the year.

Thanks for letting us know this RB.

PS you forgot to post this part of the article...

We expect that the mortgage rates will continue to trend upward over the coming year but that upward trend will be modest at best," said Frank Nothaft, Freddie Mac's chief economist.

A modest skyrocket then.

Edited by Without_a_Paddle

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A modest skyrocket then.

Bloomberg showed the UK 10 year yield as a shade over 4.4% on 3rd April. They are now 4.7%. i.e. They have gone up over 1/4% in a month even though the Bank of England base rate has not changed. Say what you like, mortgage rates have risen and I expect them to rise further...

Bloomberg also shows the 30 year US mortgage rate has risen by nearly 0.9% in the past year and the 1 year ARM rate by nearly 1.5%. How many $trillion in ARMs are due for adjustment in the next two years? I suspect an awful lot of borderline borrowers are going to be hit badly.

(Freddie Mac of course has no vested interest in the US property market whatsoever.)


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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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