Mortgage rates are forecasted to climb in 2011

Golden Valley, MN. Home Remodeling.

Mortgage rates are forecasted to climb in 2011. As the economy improves,  higher rates will follow. Household and business spending rose over most of the last year. Unemployment rate dropped to 9 percent in January.

“A stronger economy is almost by definition a cause for higher interest rates, since fatter corporate earnings and fears of inflation prompt investors to move capital out of bonds into equities. Lower demand for bonds means higher yields, or rates. While mortgage rates don’t perfectly match the bond market, a parallel path is typical.”

See article Mortgage rates reach 10-month high 

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 Golden Valley, MN. Home Remodeling.

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