'Man of the Year' Bernanke's talks refinance
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20/12/2009 8:00:00 AM
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In an extended interview with Time Magazine for his "Man of the Year" selection, Federal Reserve Chairman Ben Bernanke says he refinanced his own mortgage a few months ago.
He tells Time he refinanced at a thirty year fixed rate of about 5 per cent after his adjustable rate "exploded."
That revelation led some in the media to speculate about Bernanke's personal insight into the future of rates in the U.S.
Rates in America rose for the second straight time last week. Interest rates on a 30-year fixed-rate mortgage, the most widely used loan, averaged 4.94 per cent for the week ended Dec. 17, according to a survey by Freddie Mac.
While refinancing suggests an expectation taht rates are going to be rising, it's unlikely Bernanke's action would seem surprising given that short-rates are at zero in the US and can't get lower.