Mortgage Rates Steady Rising

[J. Mitchell Bernier]

The 30-year mortgage averaged 5.66% this week, which is up slightly from 5.55% a week ago, but could be moving higher over the next few months. 

The FED is doubling down on its quantitative tightening(QT) program starting this month. Previously, they were allowing around $50 Billion worth of govt bonds roll off the FED balance sheet and this month it almost doubles to $97 Billion. 

Put plainly, the largest buyer for Treasury's and Mortgage Backed Securities(MBS) is no longer buying. This should cause the yields on treasuries to rise,  which directly puts pressure on the mortgage rates. Compound that with the yield on MBS' having to go up as well will put some major pressure on the bond market and 30yr mortgage rates. 

Better be running your numbers on rates 1%-3% higher than where they are now. 

Good Luck!