Why Did Interest Rates Jump On Black Wednesday

Interest rates have increased dramatically since Black Wednesday - May 27,2009. Homeowners looking to refinance to rates near historical lows are clearly divided into 2 groups. Those that grabbed the brass ring, and those that waited too long. Many took the "bird in the hand" path and got a great fixed rate and lower payments to help budgets strained by the recession. Others waited for the mythical 4% rate that this professional felt would never materialize, and are faced with current rates that have increased nearly a full percent in the last 2 weeks.

While rates are unpredictable in these turbulent times, there is scant economic data to suggest a return to the rates prior to May 27. In the unlikely event of a return to those rates, the time to act upon them would seem to brief at best. The following economic data appears to help you make your own informed decision regarding which direction rates will be heading.

•· May 2009 - 1 in 398 homes nationwide received a foreclosure notice

•· Temporary freezes on foreclosure filings ended in March

•· Nearly 1,000,000 new filings since March

•· Approximately 750,000 homes taken back by banks not even on the market

•· Unemployment peak in May is a 26 year high

•· Rising oil prices likely to stall recovery efforts

•· 10 year T Bill auctions this week were Weak