Here’s John Schutze™s weekly mortgage rate update:
“Mortgage rates continued to increase this week.
The Fed’s “Stress Test” on the country’s largest banks showed that overall the banks are in good health. Some of the banks may need to raise some cash during the next couple of years assuming the economy continues to deteriorate significantly. But most of the banks have said they could raise the money if needed. The financial market’s took the news as positive in the end.
Mortgage rates are directly related to the price that mortgage bonds are selling for on Wall Street. What we’ve noticed this week is that mortgage bond prices have decreased which leads to higher rates.”
John is an Austin loan officer with Bank of America and has an Austin mortgage blog with more news on local lending rates.