There are lots of sings indicating that the economy is finally starting to improve. This optimism, might mean that the lowest interest rates ever are now, history. They might drop again next week, and will likely still remain low for a while, but, I have a feeling that we wont ever see an average 30 year fixed mortgage at 4.28%… Hopefully I’m wrong. Here is what the folks at Inman got from the MBA survey.
“Rates increased sharply last week due to stronger economic data and lingering uncertainty regarding the structure and impact of the Fed’s QE2 program,” said Michael Fratantoni, MBA’s vice president of research and economics, in a statement.
QE2 — the Federal Reserve’s plan to buy $600 billion in bonds in a second round of quantitative easing — was intended to push bond yields down, making borrowing more affordable and stimulating the economy. Bond yields have gone the other direction, in part because of fears that QE2 will also spark inflation.
According to the MBA, interest rates for 30-year fixed-rate mortgages increased to an average of 4.46 percent last week, up from 4.28 percent the week before. Points increased to an average of 1.13 from 1.04 (including the origination fee).
That put rates about where they were during the first week of September, the MBA said.
