Since the 30-year mortgage rate has been at record lows for the past three months economists have pondered how long they will stay that low and this month they found their answer.
On average, mortgage rates usually follow the yield of the 10-year Treasury note which has been around below the 2% range for months now, but as of March 6th the 10-year Treasury note jumped to 2.37%. What does that mean for someone looking to get a 30-year fixed loan? Well, it's making it harder to find an interest rate that's in the 3% range for one thing.
The reason for this increase is that treasury yields usually rise on good economic news, which in turn gives investors the willingness to taking on riskier investments and inflation will most likely start to rise as well.
As the economy recovers and unemployment stats continue to improve; the 30-year mortgage interest rate will only climb higher which will lead consumers to ask a new question. "Is it time to get back into the housing market?" Only time will tell.