U.S. mortgage rates jump in latest week

[UpInArms]

http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?guid={D97789A3-E8A1-4830-B7D2-97207E0C2EAF}&siteid=mktw&dist=bnb

CHICAGO (CBS.MW) -- The benchmark U.S. 30-year mortgage jumped back above 6 percent this week, rising to 6.02 percent from 5.89 percent a week earlier, Freddie Mac said Thursday.

...just a bit more (short blurb)...

guess the Fed doesn't have to raise rates for the rates to rise - think back to the 80s again when the consumer had to compete with the Fed for money - going to get a lot higher from here (jmho)

[rogerashton]

1. The fed operates mainly on short term rates.

If mortgage lenders expect that the short term rates are going to go up in the near future -- those short term rates are costs from their point of view -- they will try to recoup in advance by raising their long term (mortgage) rates. I think that is what we are seeing.

[denverbill]

2. I've got to agree.

The government has to sell $500 billion in debt next year, and they aren't going to be able to sell it all unless they are willing to pay higher interest rates.

And there is nothing the Fed can do about that.