Low interest mortgage rates can’t last forever, can they?
If you’ve taken out a mortgage or refinanced a mortgage recently, you may have done so because you anticipated that rates would rise.
Are rates rising, and are they expected to continue to rise? Let’s take a closer look at mortgage rates trends.
When Mortgage Rates Rise
What causes mortgage rates to rise? The rates on mortgages tend to rise and fall in tandem with the yield rate of 10-year Treasury bonds. When the bond yield rises, mortgage rates tend to rise, too. So are mortgage rates and 10-year Treasury bond yield rates the same? Not quite.
Treasury bonds are seen as safer investments than mortgages (or securitized packages of mortgages) because the risk that the…