Recently I have been talking about the three things to watch for when predicting mortgage rates:
- Europe (PIIGS)
- Fed policy
Well . . . get ready for the ride: Last week the Fed opened the door for a tapering of QE3, and this week we saw some major improvements in the US economy. As predicted, rates have shot up! Lock ’em if you got ’em.
Here is a view of the 10-year. As you can see, yields have shot up and continue to see upward pressure.
Here is a view of the Fannie Mae 3.5 coupon year to date. As you can see, May has been a month when we saw the price drop to levels not seen since last year.