US Mortgage Rates Rise to the Highest in November

Source: Bloomberg

The average rate for the US 30-year mortgage was 3.10%, the highest since October 28 and up from 2.98% posted last week. SPY is down -0.20%, DXY is down -0.12%.

• The rise in the mortgage rates reflects investors’ anticipation of bond purchase tapering by the Fed.
• The uptick in rates means that the US is shifting away from the historic low rates posted in more than a year that has lowered house affordability. The borrowing rates are still lower than before the summer of last year.
• US 10-year Treasuries yield also moved up alongside the mortgage rates, with a rate of 1.63% as of Tuesday.