Return to Transcripts main page

American Morning

Ask CNN: Why are Mortgage Rates Going Up?

Aired December 11, 2001 - 07:51   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEOTAPE)

MARIA MARTIN, CRYSTAL LAKE, ILLINOIS: I'm Maria Martin from Crystal Lake, Illinois, and I'd like to know: Why are the mortgage rates going up?

LOU DOBBS, "LOU DOBBS MONEYLINE": The reason long-term, 15 and 30-year mortgage interest rates have been going up recently is because they closely follow the bond market, in particular the 10-year Treasury note. The Federal Reserve has been lowering short-term rates this year, but the market controls long-term rates. And right now, the market is driving those rates higher in anticipation of an economic recovery next year.

Also driving those mortgages up: high demand. And that's not encouraging lenders to drop their rates further.

(END VIDEOTAPE)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.