Mortgage Rates Likely to Move Higher with Treasury Yields Increasing

Posted on | December 15, 2009 | No Comments

There is a good chance that we are going to see much higher mortgage rates in the very near future.  Treasury yields have been increasing since the end of November with the 10 year treasury rate yield moving all the way from 3.2% to 3.6% in two and a half weeks.  If you were hoping to time the bottom of mortgage rates you might be a little too late.  This is not to say that mortgage interest rates are not extremely low.


The current 30 year fixed rate mortgage is around 4.75% which is still a great deal considering where mortgage rates have been prior to 2009.  It would be a good idea to go ahead and get your mortgage application submitted today before we see the swarm of refinance applications that are likely to come in when the new year rolls around.

No one knows where mortgage rates will go in 2010 but it looks like they are going to be up for much of December 2009.  President Obama and Ben Bernanke have worked hard to keep interest rates low but could this be the changing of the guard?  Are the markets going to actually set interest rates in the near future?  Look for the Federal Reserve Bank to come out with some type of commentary to push treasury yields lower which will also help to push mortgage rates lower.

Author: Jesse Wojdylo

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