MORTGAGE RATE ALERT
Mortgage interest rates have been rising steadily during the month of May and spiked yesterday.
The primary drivers behind the rise in rates are-
1. Consumer confidence is reported to be at its highest level since February of 2008
2. The Case Shiller index reported a gain of 10.9% in March, the greatest gain in 7 years.
3. Moody’s has upgraded the US banking system from negative to stable.
4. The Federal Reserve has begun to tapper their purchases of Mortgage loans (QE 2)
The 10 year Treasury bond has increased over the past month from a yield of 1.62% to 2.135%,
which equates to the zero point 30 year rate going from 3.25% to 4.125%.
NMLS # 809305
Union Community Bank, FSB