Why Are Mortgage Rates Going Up?

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We were talking about mortgage rates about six months ago and how they were probably not going to get any lower. Well it looks like we were right.

They are on the rise now.

Up until about a week ago they were under 5% on average for a thirty-year fixed. Now it's already to 5.05% on average.

Why? Mortgage rates are influenced by treasury yields.

Treasury vs. Mortgage rates: The average yield for the benchmark Treasury bond for the past 60 or 70 years is about 5.5%, according to Marc Scudillo, managing officer at EisnerAmper.
"It is still at close to historic lows -- it has no where to go but up," Scudillo said. He added that most feel that it will be toward the later part of this year, if not early next year, that the 10-year Treasury yield will reach 4%.
As overall interest rates rise, Scudillo said that the average 30-year fixed mortgage rate could reach between 5.5% and 6% by the end of the year.

Experts don't feel that the rising mortgage rates will effect the housing market recovery. thats one good thing at least.