2.16.2011

Don't sweat rising mortgage rates






Will rising interest rates slam the door on a fragile housing recovery?

No -- though that only underscores just how grim the housing picture is.

The rate on the 30-year conforming mortgage has risen to a recent 5.1% from 4.2% last October (see chart, right), tagging along behind an even larger rise in the yield on the 10-year Treasury note over that period.

Good news, bad news
The jump in the mortgage rate has added around $50 to the monthly tab on a 30-year, fixed-rate mortgage on a median-price house ($170,000 or so) purchased with 20% down, estimates Paul Dales of Capital Economics in Toronto.

For Full story: Don't Sweat Rising Mortgage Rates/

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