Thursday 2 January 2014

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 Mortgage Rates Are Moving Higher
The economy's gradually getting on track, and that has resulted in interest rates inching higher. Naturally, the higher the rate, the less bang potential homebuyers get for their bucks.
There's little reason to expect this trend to reverse. The Fed recently announced that it's ready to begin tapering its rate-suppression plan by reducing its bond purchases by $10 billion a month. Easing up on this latest round of quantitative easing -- QE3 -- will have an impact on interest rates. After all, if the Fed's $85 billion in monthly bond purchases created the illusion of demand, what will the reduction do to the real demand?

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