“Even as policy makers rushed to support the two companies, home loan rates approached their highest levels in five years.
Loan rates are rising because of concern in the financial markets about the future of Fannie Mae and Freddie Mac, which own or guarantee nearly half of the nation’s $12 trillion mortgage market. The federal government has proposed a rescue, and has urged Congress to approve it quickly.”
After pleading for an interest rate hike over the last few months, I’ll never complain about the fed at least hinting of a hike back in June (publicly released in mid July). However, it would be nice if they actually raised the rate – like the mortgage companies are doing to consumers – so inflation chills out and we could pay $3.00 or less for a gallon of gas again. Beggars can’t be choosers. I guess $3.50 a gallon in a few months is good enough – as seen here.
P.S. As predicted, oil continues to trade lower.