Mortgage rates are rising because they’re tied to the 10- year yield. Although fixed-rate mortgages remain below their levels from a year ago, they have been advancing recently along with Treasury yields, adding to worries about sluggish home sales and faltering home prices.
The average U.S. 30-year fixed-rate mortgage was at 6.12 percent Thursday, up from 5.98 percent a week ago, according to sources The average 15-year fixed mortgage was at 5.82 percent, up from 5.69 percent last week.
It’s too soon to say if the trend will continue said Moish Alexander, but investors who had high hopes for a Fed rate cut this year are now pricing in their reduced expectations. Economic data has been too strong to warrant lower rates anytime soon; despite the tepid housing market, the job market has remained stable, wages keep ticking up and manufacturing activity is clawing its way back from stagnancy
Canadian Funding Corporation News 