Have rates moved up?

[Abdul Azeez]

Folks - the rates I am being quoted on an investment property in Memphis have seemed to gone up from 4.5 pct around 3 - 4 weeks back for a 20 pct down 30 yr to more than or around 5 pct. For 25 pct down it seems to be hovering around 4.75 to 4.875. This is after talking to 3 lenders. What is your experience? Are you seeing a similar increase?

[Stan K.]

This isn't FUD. Markets reacted to the proposed changes to our economic policies. Treasury yields went up because markets expect these changes to drive up inflation. This hike in bond rates is what drove mortgage rates higher.

Also, it looks like there is some confusion here between mortgage rates, treasury yields and Fed rate. While mortgage rates and treasury rates are closely correlated, fed rates rarely have anything to do with either. Here's a chart that shows how they compare over the last 16 years.