Economic Conversation

Refinance interest rates look to be heading higher according to the current mortgage rates forecast.  The 10 year treasury rate yield moved up drastically last week; over 10%!  This is bad news for daily mortgage rates.  It would not be surprising to see the 30 year fixed rate mortgage over 5.4% last this week.  If the yield continues to push higher, it seems that we are likely to see mortgage rates near or above 6% in the not too distant future.

If you were considering refinancing at rates lower than 5.5% then you better get your mortgage application in very quickly.  If the Federal Reserve Bank does not make any major announcement this week, your chance to refinance under 5.5% may be over sooner than you know it.  It seems that with the Fed holding interest rates down that we could definitely see a sling shot affect with mortgage rates moving up very quickly once they start to trend higher.

There will be ebs and flows along the way, but it sure looks like the 30 year fixed rate mortgage is going to move higher with the 10 year treasury rate yield.  If the yield can break the resistance of 4% then we could see average mortgage rates move up quite a bit in a short period of time.  With that knowledge, get those mortgage applications in now!