The 10 year Treasuries hit an intraday high of 3.7% which is the highest it has been in 9 months versus a low of 2.33% in October.
The 10 year Treasuries are used in determining interest rates for and have a high correlation with 30 fixed rate mortgages. So in practical terms we will see 30 year fixed rates now go above 5% versus 4% a couple of months ago.
In fact I know a person that was able to get a 30 year fixed close to 3.75% with 1 point just a couple of months ago. The difference between now and last spring is that the Federal and State subsidies for homebuyers are now gone.
Interest rates up – home prices down assuming income and housing inventory is the same.
John Paul Ledesma
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