Fri, Jul 12, 2013 12:47 PM EDT 1:13
Are Banks and Housing About to Get Crushed by Rising Rates? The evidence is everywhere: mortgage rates are at a two-year high, applications have fallen for four straight weeks after climbing for more than a year, and Fed Chairman Ben Bernanke says he would have to "push back" if the impact of rising interest rates were jeopardizing the recovery. An unrelenting surge in interest rates for U.S. home mortgages pushed borrowing costs to their highest level in two years last week, stymieing demand from potential homeowners. The Mortgage Bankers Association said Interest rates on fixed 30-year mortgages rose for the ninth week in a row to average 4.68 percent in the week ended July 5. It was the highest level since July 2011 and a 10 basis point increase over the week before. ... Fewer U.S. foreclosures were completed in May compared with a year ago, while the number of houses in the foreclosure process also declined as the market continued to heal, data analysis firm CoreLogic said.