Mortgage rates increasing due to Fannie and Freddie on 100 Mortgages

Mortgage rates are now rising due to the troubles of the two big U.S. mortgage lenders, Fannie Mae and Freddie Mac. This will cause yet another blow to the already fragile housing market.

Just as the government stepped in to save the two mortgage lenders, home loan rates were almost at their highest levels in five years.

The average interest rate for 30-year fixed-rate mortgages is now 6.71 percent, this is from 6.44 percent.

It seems that the concern in the financial markets about the future of Fannie Mae and Freddie Mac are the major cause of these rate increases, both companies guarantee nearly half of the nation’s $12 trillion mortgage market in the U.S.

Because of the troubles that these lenders are now facing the cost has been past on to consumers through the mortgage markets. If you have a $400,000 loan then you will have to find an extra $71 a month, which is $852 a year.

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