Mortgage Rates Rising Behind Bernanke's Faith In Housing

, Bloomberg

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Federal Reserve Chairman Ben S. Bernanke said the central bank is ready to slow its purchases of Treasuries and bonds backed by housing loans.

What's being said

  • Mortgage rates had nowhere to go but up. But given a housing market that's anything but normal, higher rates don't bode well for regular buyers and sellers. As rates rise, fewer regular buyers will qualify for loans. Institutional buyers already have cooled their aggressive purchases because of the rising prices, especially in South Florida.
    Homeowners may be optimistic that the market will push them above water, but given the Fed's latest news and the depth of some owners' debts, that's not a realistic option for many.

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