The Real Estate Wonk: Mortgage rates head ... up? - Baltimore homes, apartments, real estate: Buying, selling, renting and housing news from reporter Jamie Smith Hopkins

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March 16, 2008

Mortgage rates head ... up?

So you're thinking about getting a mortgage or refinancing one you already have -- you keep hearing about how the Fed is lowering rates, and that means a better deal on loans, right?

Well ... no. It's more complicated than that, and you need only look at what's happened in recent weeks for proof:

That's the weekly average for 30-year fixed-rate loans, according to Freddie Mac.

So why aren't mortgage rates playing nice?

Usually, recession fears press rates down. That's what was going on at the beginning of the year. But after that, as the Associated Press notes, "bond markets have grown worried about rising inflation pressures that are coming as the economy slows." That's sent rates back upward.

So far, though, they're below the average for last year -- 6.34 percent.

Posted by Jamie Smith Hopkins at 6:45 AM | Permalink | Comments (1)

Comments

And if Bear Stearns goes BK, you can be sure mortgage rates will keep increasing while the fed is cutting. Investors want return for the risk.

Posted by: Kevin | March 16, 2008 1:20 PM

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About Jamie Smith Hopkins

Jamie Smith Hopkins, a Baltimore Sun reporter since 1999, writes about the regional economy. Her reporting on the housing market has won national and local awards. Hopkins is a Columbia native and has lived in Maryland all her life, save for 10 months spent covering schools in Ames, Iowa.
She trained to become a wonk by spending large chunks of time as a geek and an insufferable know-it-all.
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