NEW YORK ( TheStreet) -- It was bound to happen.
On Thursday, just a day after Federal Reserve ended its $1.25 trillion mortgage-buying spree, Freddie Mac (FRE) gave the first major signal that the housing market could face further impediments. Freddie's weekly survey showed a sharp climb in mortgage rates, with the price of a 30-year fixed mortgage hitting the highest level since January.
But investors should take pause before concluding that the nascent housing-market recovery will be torn asunder.
First, it's worth pointing out that the Fed's move isn't wholly responsible for the rise in mortgage rates. The central bank has been gradually winding down its mortgage-backed securities purchases for several months, and the coming end was widely broadcast. The climb had more to do with the recent spike in Treasury bill yields, which are struggling to regain investors who jumped into riskier waters.Equities have risen in recent weeks, as have junk bonds, which reached a record issuance of $38.3 billion for March and $61 billion for the quarter. A
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV