Bloomberg (08/21/08); Shenn, Jody
Concerns about Fannie Mae and Freddie Mac's capital levels boosted yields on bonds guaranteed by the two government-sponsored enterprises and caused the widest spread between these bond yields and comparable Treasuries in more than two decades. As a result, the average 30-year fixed mortgage rate jumped to a six-year high of 6.37 percent during the week ended Aug. 21. In turn, higher mortgage rates sparked a 34 percent drop in mortgage applications to an eight-year low during the week ended Aug. 15, according to the Mortgage Bankers Association. Experts note that home sellers must reduce asking prices so that buyers can achieve the optimal mortgage payment.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment