Austin loan officer John Schutze runs us through his weekly mortgage rate round up.

Mortgage rates keep inching higher as we end the week!

The same factors that lead to the large increase last week are still keeping the pressure on rates:

  • Rising oil prices and gas prices
  • Optimistic predictions about the end of the recession
  • Concerns over the U.S. total debt load
  • Fears of inflation


Given the factors above, investors desire a higher rate of return on their investment which is driving rates higher.

The Fed has spent around $600 billion of the 1.2 trillion allocated to purchase mortgages. They bought $25 billion last week but it wasn’t enough to push 30 year rates back below 5.0%. So the trend remains higher for now…”

John works at Bank of America and writes a blog about Austin mortgages.An Austin Realtor is a Realtor ® in Austin, Texas. You can search Austin homes for sale at his website.


1 Comment

Karen Highland · June 7, 2009 at 8:24 am

Garreth, I’m hearing similar info from our lenders up here as you are in the Austin real estate market. Those historic low rates won’t be seen again for a few years. "Rates come down like an escalator, but go up like an elevator"

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