Mortgage Rates Increasing on Inflation Fears

Mortgage rates have ticked upward over the past few days in response to market activity around the 10-year Treasury Bond. According to, the average interest rate for a 30-year fixed mortgage has increased from 5.00% to 5.39% in just a few days. An article in today’s Wall Street Journal goes so far as to proclaim that “Mortgage Rates Surge, Sap Hopes.” They cite similar interest rate figures from a different source and quote two

Mortgage Rates (Inflation vs Recession)

I see articles about interest rates going down every time I scan the business news. Either the Federal Reserve just cut rates or Wall Street is demanding further cuts. Yet after briefly going down, mortgage rates are again on the rise. What gives? The key to this mystery is that mortgage rates are based on long-term interest rates (like the 10-year Treasury rate) rather than the short term rates that Federal Reserve influences. Short-term and