Rising Interest Rates
There has been a lot of talk about the most recent rising interest rate trend and the effect that can have on the economy as a whole. When you hear the term “interest rates,” typically it means the federal funds rate. The federal funds rate is the rate that banks charge each other to borrow money from one another. When the interest rate is raised, it makes borrowing money more expensive, which affects how consumers and businesses spend. This is how the Federal Reserve (“the Fed”) attempts to control inflation through its monetary policies. Read the rest of this entry
WASHINGTON – Aug. 3, 2012 – The average U.S. rate on the 30-year fixed mortgage rose this week after falling to new record lows in each of the past four weeks.
Mortgage buyer Freddie Mac said Thursday that the rate on the 30-year loan jumped to 3.55 percent. That’s up from 3.49 percent last week, which was the lowest since long-term mortgages began in the 1950s. Read the rest of this entry