Emily’s Corner – Mortgage Interest Rates are heading up higher and higher

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%.

 

Emily Hamilton

Mortgage Originator

NMLS # 809305

Union Community Bank, FSB

ehamilton@unioncommunitybank.com

ph. 717-492-2293

cell 717-830-0717

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