Impact Of Rising Mortgage Rates On The Housing Recovery

Since early May, rates on 30-year fixed-rate mortgages have risen from 3.35 percent during the week ending May 3rd to 4.51 percent for the week ending July 12th; an increase of 116 basis points (bps) in nine weeks in mortgage rates. According to Fannie Mae – Federal National Mortgage Association (OTCBB:FNMA) the question arises whether the recent increase in interest rates will stall the housing recovery, a relative bright spot in the economy during the first half of 2013. Also see: Mortgage Rates Increases Slow Refinancing No historical precedent for the effect on the housing market Fannie Mae – Federal National Mortgage…