Mortgage Borrowing Costs Still on the Rise

Mortgage rates continued to rise yesterday as benchmark Treasury yields moved higher and prices of mortgage backed securities fell. MBS opened the day weaker and extended losses all the way into the close, forcing most lenders to reprice for the worse. By the end of the day, the par 30 year fixed mortgage rate had climbed to 4.875% (a couple of lenders had 4.75 but only a few). Unfortunately weakness in the rates market has carried over into today...benchmark Treasury yields are still on the rise and mortgage rates continue to creep up. To remind readers, as MBS prices move lower, lenders are forced to increase consumer borrowing costs.