Friday, July 04, 2003

Mortgage rates are now at their highest levels since May:
Thirty-year mortgage rates averaged 5.40 percent this week, up from 5.24 percent last week. This week's rate was the highest since the week of May 15, when it was 5.45 percent. Fifteen-year mortgages stood at an average of 4.75 percent, the highest since the week of May 15 and up 0.12 percentage point from last week.
To the extent that consumer spending relies heavily on debt financed by mortgage refinancing, and the US economy desperately needs consumers to consume their rears off, this gradual ascent could spell bad news for the much-anticipated recovery.

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