The Real Deal Miami

Banks keeping mortgage rates artificially high, economists say

December 24, 2012 03:00PM

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The Federal Reserve’s efforts to continue pushing mortgage rates lower have been stymied in part by banks, some of which are unable or unwilling to pass on cheaper rates to borrowers, the Wall Street Journal reported. The Fed’s policy of quantitative easing, or buying mortgage-backed securities, has pushed rates on 30-year fixed-rate mortgages to generational lows. Last week’s rates were 3.37 percent, a drop of nearly three percentage points from when the policy went into effect four years ago, according to Freddie Mac. [more]

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