After initially going lower with the fed funds rates, the mortgage rates are going up. Freddie Mac reported 30-year mortage rates averaged 6.24% up from 6.04% last week.
In a seprate report Bankrate is reporting average 30-year rate 6.41%. In five weeks, the 30-year mortgage rates have gone from 5.57% to 6.41%. Investors are waking up to the inflation.
As the fed lowers the fed funds rate, inflation is zooming upward. Now, the investors are asking for excess returns to compensate for the inflation. So much for all those analysts who said lowering rates is going to help the home owners.
Just remember those analysts who upgraded the homebuilders. Few months down the line, if the builders are doing worse, they are going to say we could not see mortgage rates going up so fast or other bull. So when listening to an anlyst, make sure you do your own research.
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