Replies to post #92956 on Fannie Mae-No Politics (FNMA)

[HiJames]

YES The 30-year fixed-rate mortgage averaged 4.46% for the week ending June 27, up from 3.93% last week, according to Freddie Mac’s weekly survey of conforming mortgage rates. This week’s average is the highest since the week of July 28, 2011.

http://www.marketwatch.com/story/say-goodbye-to-ultralow-mortgage-rates-2013-06-26

[obiterdictum]

Yes and No.

Late in the 1st quarter, Federal announcment caused a spike in interest rates but the Federal Reserve did not raise rates. Just because rates rise does not mean the Fed raise them.

The Federal Reserve has been trying to keep interest rates low by reducing the level of short-term interest rates to near zero. Long-term interest rates were also lowered by purchasing huge amounts of long-term Treasury securities and long-term MBS from Fannie and Freddie. The upset in his speech a few weeks back was the mention that the Federal Reserve will reduce its asset purchases, if the data indicate that is what to do, with the result that interest rates may go up and that affects business large and small.