Morgan Stanley: Mortgage rates to jump in ‘10

By Geert De Lombaerde Posted on December 29, 2009 at 10:46 am

David Greenlaw, Morgan Stanley’s chief fixed-income economist, says bond investors will demand higher yields in the coming year. That will help push up home mortgage rates by more than two points.

“When you take these kinds of aggressive policy actions to prevent a depression, you have to clean up after yourself,” Greenlaw said in a telephone interview with Bloomberg. “Market signals will ultimately spur some policy action but I’m not naive enough to think it will be a very pleasant environment.”

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Tags: David Greenlaw, economic policy, interest rate, investment management, Morgan Stanley, mortgage bonds, mortgages  

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