Why is the 30 Year Mortgage Rate So High?
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December 31, 2013 - 8:12am
Econintersect: The average thirty-year fixed-rate mortgage is now near its historic low of about 3.3%. However, the mortgage-backed-securities (MBS) market, where bundles of mortgage loans are sold to investors, have been even more dramatic. In fact, all else equal, had these declines passed through to loan rates one-for-one, the average mortgage rate would now be around 2.6%.
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