Mortgage Rates Inch Up As Investor Confidence Grows

March 15, 2012

in News

Mortgages Inch Up As Investor Confidence Grows

Mortgage rates inched upward this week as investors gain confidence in the economy and banks signal they’ve strengthened their systems enough to weather another recession. The benchmark 30-year fixed-rate mortgage rose 4 basis points this week, to 4.15 percent, according to the national survey of large lenders. “If the economy keeps chugging along, rates could really take off,” says John Walsh, president of Total Mortgage Services in Milford, Conn. Two key economic indicators signaled to investors this week that the economy might be coming out of the woods. Retail sales figures released Tuesday showed that consumers spent more in stores in February, as sales rose 1.1 percent compared to January. It may seem like a small change, but that’s the biggest gain in five months, according to figures from the U.S. Department of Commerce. The economy added 227,000 jobs in February, according to a report released last week. While the unemployment rate remains high and stalled at 8.3 percent, the report shows the labor market has improved for three months in a row. [Read this article]

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