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Daily Digit: Interest rates spike to 2-yr high

Thursday, August 15, 2013 - 00:49

Aug. 15 - Yields on the 10-year note spiked to 2.8 percent, threatening to pull mortgage rates higher and housing demand lower. Conway G. Gittens reports.

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The Daily Digit centers on the interest rate of 2.8 percent. The lending rate on the U.S. 10-year note is at a two year high and will likely mean mortgage rates are heading back up. That's key for those looking to lock-in a relatively low 30-year mortgage rate, which just happened to dip last week, according to the Mortgage Bankers Association. But the trend is definitely up with home-lending rates a full percentage point higher since late spring. Why? That's when the Federal Reserve hinted that it may soon kick the habit of buying as much as $85 billion a month in bonds in order to keep mortgage rates at historic lows. And with the labor market improving and inflation low, some debt investors bet the Fed could start doing that sooner, rather than later.

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Daily Digit: Interest rates spike to 2-yr high

Thursday, August 15, 2013 - 00:49