Over the last few weeks, mortgage rates have ticked down a bit opening up a buying opportunity for house hunters to take advantage of a dip in a steadily rising rate environment. Most analysts don’t believe this dip will last for long. With reports flowing in that the Bank of Japan is discussing changes to its monetary policies, the 10 year treasury has started to move up again.
The 10 year treasury looks like it could break through the 3% mark which would signal an increase for mortgage rates. Since mortgage rates follow the trajectory of the 10 year US treasury note.
Other fundamentals like rising inflation will also contribute to the sell-off in the treasury market which will continue to push yields higher. Even with this short term dip the fact that there is still little inventory does little to help buyers ready to pounce on a property while taking advantage of a lower rate.
With builders not acting to ratchet up home starts there is not likely to be any relief in the inventory glut. We continue to see a challenging market and wish everyone good luck in their home and mortgage shopping.