Interest Rates to Rise as QE2 Ends

Daily Real Estate News  |  May 5, 2011  |   Share

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Interest Rates to Rise as QE2 Ends
Wells Fargo Securities Chief Economist John Silvia warns that higher interest rates are on the horizon, with the Federal Reserve set to end its program of buying U.S. Treasurys in June.

He expects higher interest rates to put added pressure on a struggling residential real estate market, but does not expect them to halt the broader recovery. Silvia forecasts that Treasury rates could rise by one-half to a full percentage point, which in turn will affect mortgage interest.

Source: “Interest Rates to Rise as QE2 Ends, Economist Warns in Denver,” Denver Post, Aldo Svaldi (05/05/11)

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