Interest rates spike

Interest rates spiked about 1/4 point yesterday as investors worry that the Fed’s pumping of trillions of dollars into the recovery will lead to inflation. The Obama administration has been trying to spur the real estate industry with low interest rates through the purchase of mortgage backed securities, but investors, sensing the market is turning upward, are beginning to NOT invest in those super safe investments, but believe they can get better returns elsewhere. Thus, the returns for the Treasuries must also increase to attract buyers. For more detail, read today’s Wall Street Journal article about these issues.

Filed under article topic: Mortgages/Interest rates
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