Mortgage rates are going up as a result of the surging of bond yields.
Since the end of March, rates are at the highest as it follows the 10-year Treasury. Although the increase may not mean so much in terms of the average monthly payment of homebuyers for now, this could be a prelude to a steady rise of the mortgage.
As the rates continue to move past 4.6%, talks about the number hitting the 5% mark is starting to come up. When this happens, this would be a burden not only to buyers but also to sellers.
“Rates are in the midst of a serious, threatening move higher,” Mortgage News Daily’s Matthew Graham says. The surge of bond yield “brought additional confirmation of the end of the friendly springtime consolidation trend, and it took us one step closer to the highest yields in more than four years.”