Mortgage rates are at historical lows, but they are increasing at the fastest pace in a decade, Businessweek claims in a new article.
Earlier this week, Federal Reserve Chairman Ben Bernanke said the Fed plans to taper off purchases of mortgage-backed securities once the unemployment rate hits 7%.
The news sent stock markets plunging around the world, the article noted.
“If people believe house prices are going up, credit availability will evolve,” said Paul Willen, a senior economist at the Federal Reserve Bank of Boston. “There is too much money to be made lending to homebuyers. Lenders will find a way.”