Mortgage Rates Hit 3-Month High

Housing and consumer-spending rebound hopes endangered
By Matt Cantor,  Newser Staff
Posted May 29, 2009 7:28 AM CDT
Mortgage Rates Hit 3-Month High
In this May 9, 2008, file photo. a foreclosure sign stands outside a home in Denver.    (AP Photo/David Zalubowski)

Mortgage rates jumped to a three-month high yesterday, putting hopes for a rebound in the housing market and consumer spending at risk, the Wall Street Journal reports. The average 30-year fixed rate hit 5.44% from 5.29% the day before and 5.03% Tuesday. The rates make it tougher for homeowners to lower payments by refinancing, which in turn can hurt consumer spending.

“The spike in rates has the potential to derail a lot of things,” said a strategist. And mortgage delinquencies and defaults are rising with job losses. Some 5.7% of prime fixed-rate loans, 49% of subprime adjustable-rate loans, and a record 12.1% of first-lien home mortgages were past due or in foreclosure in late March.
(Read more housing market stories.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.