Thirty-year fixed mortgage rates edged upward by a basis point, and so did rates on 5/1 ARMs, according to a NerdWallet survey of daily mortgage rates published by national lenders Friday morning. Fifteen-year fixed mortgages were unchanged.
In a speech this morning at the Federal Reserve’s annual symposium in Jackson Hole, Wyoming, Fed Board Chair Janet Yellen defended the legislative and regulatory response to the 2008 economic crisis.
“In retrospect, mortgage borrowing was clearly too easy for some households in the mid-2000s, resulting in debt burdens that were unsustainable and ultimately damaging to the financial system,” Yellen said.
Regulators all but banned the riskiest mortgages, such as payment-option ARMs, in which the minimum monthly payment didn’t even cover that month’s interest.
“The United States, through coordinated regulatory action and legislation, moved very rapidly to begin reforming our financial system, and the speed with which our banking system returned to health provides evidence of the effectiveness of that strategy,” Yellen said.
MORTGAGE RATES TODAY, Friday, AUG. 25:
NerdWallet daily mortgage rates are an average of the published annual percentage rate with the lowest points for each loan term offered by a sampling of major national lenders. APR quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.
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