Boston Herald (03/11/08); Kronenberg, Jerry
Mortgage rates have not fallen to the same lows seen in 2003, despite reports of the economy nearing a recession. Mortgage rates presently exceed the 10-year Treasury yield by approximately 3 percentage points, marking the biggest spread in more than two decades. Experts attribute the higher mortgage rates to the interest-rate demands of the few investors willing to purchase home loans, as well as Fannie Mae and Freddie Mac's new fees to minimize risk. Some believe rising mortgage rates point to the widespread effect of the subprime mortgage crisis. According to Bankrate.com's Greg McBride, "This credit crunch is like the movie villain that refuses to die. The subprime crisis was just the initial domino falling."
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