Mortgage Rates The Highest They’ve Been In Two Years
Cnn has reported that mortgage rates have continued to rise and now stand at the highest rates in over 2 1/2 years.
Vice President of Freddie Mac, Frank Nothaft had this to say:
“In the first quarter of 2006, it appears that economic growth picked up relative to the last three months of 2005. There is concern that the continued high level of energy cost may lead to inflation in other sectors of the economy. And fear of inflation leads to higher mortgage rates, like the ones we see this week.”
Mr. Nothaft continued to say:
“Our forecast for the year as a whole is for economic growth of 3.8 percent in 2006, above the 3.2 percent in 2005, which may warrant even more Fed rate hikes than previously expected. If that is the case, mortgage rates may continue their gradual upward trend.“