Mortgage Rate Increases Signaling US Economy Growth
Saturday, June 14th, 2008Mortgage rates which are not tied to the Fed funds rate are signaling for future US economic growth. Mortgage rates fluctuate daily depending on sentiment on how the US economy will be in the future, unlike short term rates that are fixed by the Fed. As the economy gets worse, the mortgage rates drop, while currently the rates have increased with bullish predictions for the 6 months to a year in the future. Current 30-Year rates are around 6.3%, where they were only 6.06% last week and below 6% two weeks ago.
