By Nick Timiraos
Mortgage rates are back above 4% for the first time in a year, but the rate rise probably isn’t going to be enough to take the wind out of the sails of the housing market rebound.
The Mortgage Bankers Association reported on Wednesday that rates jumped to 4.07% last week for the 30-year fixed-rate loan, up from 3.9% in the previous week. At the beginning of May, rates stood at 3.59%, according to the same MBA survey.
Mortgage rates tend to track yields on 10-year Treasury notes, which have jumped as anxious investors sell off Treasury securities amid signs that the Federal Reserve may begin to slow down the bond-buying program it launched last year. Bond yields rise as prices fall. By midday Wednesday, yields on the 10-year Treasury were 2.09%, down from a high of 2.24% last week but up from a low of 1.62 at the beginning of May.
Related: How rising mortgage rates could affect the housing recovery
Also: Mortgage servicer in Chandler set to hire 1,000
If you’d like to discuss real estate matters, contact Rose Law Group founder Jordan Rose, jrose@roselawgroup.com
