Treasury market activity Tuesday suggests mortgage rates are moving much higher.
Late today, the yield on the 10-year Treasury was 3.158 percent, according to market data from WSJ.com. The price — which moves in the opposite direction of the yield — sank 1 29/32 on the day.
Last Thursday — when the 30-year fixed-rate mortgage was reported by Freddie Mac at 4.46 percent — the 10-year yield was 3.01 percent, according to Treasury Department data.
The sharp increase in yield follows an agreement between the Obama administration and Republicans to delay the elimination of Bush-era tax cuts.
Movement in the 10-year yield suggests that the 30-year fixed-rate mortgage might be around 4.60 percent in Freddie’s weekly survey this week.
