Industry NewsMortgage

Mortage rates can turn on a dime

Optimism that pushes up cost of borrowing can fade fast

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Mortgage rates could ease again if optimism about the economy proves to be unfounded, says loan officer Dan Green, looking back at 2010 and 2011 on his blog, The Mortgage Reports.That interest rates on bonds and mortgages are up the last two weeks is a byproduct of good news -- there are signs that U.S. economic growth is picking up and unemployment is falling."Unfortunately for mortgage rate shoppers ... when Wall Street feels hope, mortgage bonds lose. It's why mortgage rates have raced higher since last week," Green writes."Could the optimism of March 2012 vanish by April? Could mortgage rates resume falling? Of course they could," he concludes, recalling the drag that Europe's economy had on the world last spring.The European debt crisis is by no means resolved, Federal Reserve Chairman Ben Bernanke told lawmakers last week. And many analysts fear an unexpected event -- like a crisis in the Middle East that sends oil prices skyrocketing -- could still ...