10 Year Treasury Rate Pushing Mortgage Rates Higher
Since the beginning of the year, the 10 year treasury rate has been in a steady uptrend. In December, the rate was at 2.07% and just recently we almost hit 4%. This amazing ride has not been coupled with mortgage rates which is quite unusual. There is a strong correlation between mortgage rates and the 10 year treasury rate so it is very unusual see to one uptrend while the other is downtrend.
Well, that all changed about three weeks ago when it is likely we saw the end of low mortgage rates. Rates may have hit a bottome when they went under 4.8%. Since then it has been a straight up shot to over 5.5%. Bankrate is even reporting that average rates are just under 6%. There is a HUGE difference in getting a 30 year fixed rate mortgage in 4.8% and 6%. I hope all of you locked in on low rates!
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