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30-Year Jumps Past 4.7%
Treasury yields suggest big rise in mortgage rates
By SAM GARCIA Mortgage Daily
Dec. 8, 2010
The 30-year fixed-rate mortgage has risen above 4.7 percent.
Mortgage rates were already reeling Tuesday as Treasury yields soared.
The increase followed an agreement between congressional Republicans and the Obama administration to extend Bush administration tax cuts and unemployment benefits.
But the action wasn't over on Wednesday, with the benchmark 10-year Treasury yield elevating again. Mortgage rates tend to move in tandem with the 10-year yield.
Based on a Mortgage Daily analysis of Treasury activity, the 30-year fixed-rate mortgage is likely to climb to around 4.75 percent in Freddie Mac's survey tomorrow from 4.46 percent last week.
Mortgage loan originators use technology from Mortech Inc. to find the lowest rates for prospective borrowers. Using Mortech's pricing engine today, the interest rate on a 30-year mortgage was priced at 4.750 percent based on a $200,000 mortgage on a one-unit residence in Dallas.