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Banks set mortgage rates in line with the yields on mortgage-backed bonds, for example.
UBS, based in Zurich, agreed to pay a $1.5 billion fine as part of a settlement last month over the manipulation of crucial benchmarks used to set mortgage and other interest rates.
UBS, based in Zurich, agreed to pay a $1.5 billion fine to the global authorities after admitting this month that it had helped manipulate a benchmark rate used to set mortgage and other interest rates.
As the stock market rallied, the yields rose on the closely watched 10-year Treasury note, which helps set mortgage rates, and on the 2-year note, which has been a haven for worried investors.
Once you have a full set mortgage everything you've got to put houses on them".
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Although many investors think that the Treasury market sets mortgage rates, mortgage-backed traders are the ones who hold sway.
Jeffrey Appel, director of new development financing at the Preferred Empire Mortgage Company, says he has seen buyers who have already made down payments on apartments this expensive, who are now having trouble setting mortgage rates.
Because the note is an important element in setting mortgage rates, home-loan rates appear headed to their lowest levels in decades and could unlock billions of dollars in additional consumer spending from homeowners who refinance.
New York Attorney General Eliot Spitzer is questioning some of the nation's biggest banks in an investigation of potential discriminatory practices in setting mortgage rates and fees.
But he will have greater control over credit: in Canada, the government sets mortgage-lending standards.It may not have been stringent enough recently.
Many housing activists and homeowners hoped that Watt would announce his support for "principal reduction" -- allowing Fannie and Freddie to re-set mortgages for underwater homeowners so that their payments reflect the current market value of their homes.
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