The 10 year treasury yield a benchmark for 30 year fixed mortgage rates has risen dramatically over the past week. Today it's up to 3.713 and edging closer to 4 as the days go by. It's very likely banks will price their 30 year fixed mortgages around 6% if the yield reaches a level of 4. More positive data on the housing front came today as home sales posted their biggest month to month increase percentage wise in 8 years. During economic recovery the government is more likely to focus on fighting inflation than lowering mortgage rates.
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