Current Mortgage Rate Trends – Interest Rates Set to Move Up
Posted on | July 26, 2009 | No Comments
Please use Subprime Blogger to get your mortgage rate trends; all trends articles are updated Monday, Wednesday and Friday. There are also several articles to help you get a home loan modification.
The current mortgage rate trends are showing that mortgage rates are likely to move higher in the next few weeks. The 10 year treasury rate yield continues to move higher; a move in the last two weeks from 3.3% to 3.7%. There was a slight pullback Friday but nothing that would be considered a trend breaker. The alarming issue at hand is the fact that the yield has moved much higher yet average mortgage rates have yet to blink. We have seen a slight move higher, but nothing as we should expect.
Armed with the knowledge that the 10 year treasury rate is in a strong uptrend, we should expect mortgage rates to follow suit. The last time there was a major disconnect in mortgage rates and the 10 year yield, we saw a huge one week jump in average mortgage rates. There was actually one day in which rates moved as much as .75%. It will be very scary if that happens to be the case again. If we see a push up that much, average mortgage rates would be above 6%. That would definitely be headline news.
I do not think this will be the case until we see another push closer to 4% from the 10 year yield. If the yield pushes higher and mortgage rates do not, we can expect another one of those days and we will see headlines all over CNBC about how mortgage rates skyrocketed. I will gladly say, I saw it coming. 
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