Holden Lewis of Bankrate.com does a simple analysis and concludes that interest rates, already up at least a quarter of a point since the beginning of this year (just three short months) have more room to grow.
He looks at the 10-year treasury bill (bond?) (note?) and sees that it has increased .5%, from 4.37% to 4.87%, since January 1st, but that the survey of Bankrate’s lenders found rates have increased only .17%, from 6.27% to 6.44%. He deduces from this that mortgage loan rates are still below where they should be, logically.
Sounds good enough for me.
More details: Mortgage Matters – By Holden Lewis, Bankrate.com