I’ve been expecting 30 year mortgage interest rates to be increasing because of increased risk. I figure investors would want a risk premium for the risk of not being paid, and the risk that the value of the dollar will decline. Why would an investor want to invest in real estate mortgages right now? Therefore rates would have to rise in order to provide incentive.
So what’s going on with the 30 year mortgages? Are there any good website to explain what’s going on?
Rates are not increasing, recently they have decreased due to the US government taking control of Fannie May and Freddie Mac. This removed much uncertainty from the market because government backed securities are through to be "risk free".
You can follow the 30 year rate at the following site:
http://www.mortgagenewsdaily.com/mortgage_rates/
Rates are not increasing, recently they have decreased due to the US government taking control of Fannie May and Freddie Mac. This removed much uncertainty from the market because government backed securities are through to be "risk free".
You can follow the 30 year rate at the following site:
http://www.mortgagenewsdaily.com/mortgage_rates/
References :
Whatever you do, don’t listen to Bankrate.com. They are a shill for the mortgage industry and ALWAYS spin it so it’s a good time to buy right now. They lie so routinely that they don’t even know they are doing it, or at least they are believing their own crapola. Truth be told, it’s hard to find a reputable site online. Just read the news on Yahoo and Google and BusinessWeek (imo the best) and make up your own mind. Motley Fool has some good stuff from the outside looking in.
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