Some of the most competitive lenders in the market are boosting fixed rates by 10+ basis points, effective tomorrow. It comes on the heels of today's upside breakout in bond yields. The 5-year government yield (which leads fixed rates) sprang up to 1.51% today. That's a 3½ month high.
If the yield holds above 1.50%, five-year mortgages around 3% could be a bygone, at least for the foreseeable future.
Yields are rallying in response to: The
Greek bailout deal,
Net-positive economic data,
Increased risk appetite (i.e., traders are selling "safe" bonds and buying other assets), and
Technical selling (We're coming off an epic bond bull market. Some traders are selling bonds and locking in profits [bond prices and yields move inversely]).
