30-year mortgage rates rise in US

Bangladesh News.Net
Thursday 24th July, 2008

Mortgage rates have risen in the US over the past week with 30-year mortgages climbing to the highest level in nearly a year.

The rate rises are reflecting concerns in financial markets about the troubled mortgage lenders Fannie Mae and Freddie Mac.

Rates on 30-year mortgages surged to 6.63 percent this week, up sharply from 6.26 percent last week.

Analysts said that the rising cost of funds for Fannie and Freddie had a visible impact on all mortgage rates due to the companies being so huge.

The House on Wednesday approved and sent to the Senate legislation that would expand the government’s powers to shore up finances at both companies.

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