Wednesday, July 23, 2008

When Your Fannie Spanks Back

The Mac-Daddies-No-More are killing the mortgage market:
bond investors, worried that the companies may not be as big a support to the market as they have been, are driving up interest rates on securities backed by home loans. That added cost is being passed on to consumers through the mortgage markets. For a $400,000 loan, the increase in 30-year rates in the last few days would add $71 to a monthly bill, or $852 a year.

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