Mortgage rates will rise sharply after three weeks of easing

Sign “For Sale” outside a home in Croquet, California on Tuesday, May 31, 2022.

David Paul Morris | Bloomberg | Getty Images

After a setback over the past three weeks, mortgage rates have risen sharply this week.

The 30-year level hit 5.36% on Monday and then rose again to 5.47% on Tuesday. Mortgage News Daily. Fluctuations in global markets on Monday boosted bond yields. Mortgage rates follow a 10-year U.S. Treasury yield.

The average rate of popular 30-year fixed debt ended last week at 5.25%. The average rate of popular 30-year fixed debt ended last week at 5.25%. Finally, three weeks ago, it was 5.67%, but the rate fell as the stock market sold out and bond yields fell.

The rise on Tuesday may have been due to data released from the US Manufacturing Index.

“The rise in the manufacturing index suggests that the economy is not braking too fast,” wrote Matthew Graham, COO for the mortgage News Daily on the site.

Mortgage rates, which are much higher than they were at the beginning of the year, have been hitting the brakes on the red-hot home market over the past few weeks. Real estate dealers report Low salesAnd Mortgage request to buy a house Decreases.

Despite falling home sales and mortgage demand Housing prices are rising even faster. Prices are usually about six months behind sales, but the rare dynamics in the market today – strong demand and very low supply – still keep prices high.

Lawrence Yoon, chief economist at the National Association of Realtors, told CNBC’s Power Lunch event on Monday that “the fall in home prices in the coming months is inevitable.”

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