From the Mortgage Matters blog, by Holden Lewis, at bankrate.com:
I hope you weren’t floating your mortgage rate this week. Tuesday and today have been brutal on mortgage rates because of the economic news. Consumer confidence is up when investors had expected it to go down. Used-home sales in March rose when investors had expected them to drop. And new-home sales went up by more than 10 percent last month, when investors had expected them to rise just a little bit.
As a consequence, Treasury yields have risen sharply in the last couple of days. Mortgage rates are rising with them. The yield on the 10-year Treasury is 5.09 percent this morning, up from 4.99 percent Monday. In today’s Bankrate survey of mortgage rates, the 30-year probably will rise 6 or 7 basis points from last week’s 6.57 percent. That will give us the highest rates since June 2002.
The Perfect Storm. Higher interest rates and higher home prices.
I hate it!
Source: Mortgage Matters – By Holden Lewis, bankrate.com