"Another remarkable moment of Fed disconnect from the press conference was when Bernanke remarked, “The change in mortgage rates we’ve seen so far is not all that dramatic.” Huh? It’s been enough to slow down refis (a source of spending) sharply and send buyers racing to close deals out of fear of further rate increases. And perhaps most important, the signal that the Fed really wants to start tapering this year means even higher rates are coming soon. That means buyers who are homeowners (as opposed to investors/landlords) are looking at a lot less affordability, which can’t not have a price impact. MacroBusiness weighs in on this issue, and its broader ramifications."
U.S. Mortgage Rates Rise for a Sixth Straight Week
Mortgage rates have been following a surge in 10-year Treasury yields, which touched an almost 14-month high on June 11 amid concern that the central bank may slow purchases of U.S. government debt as the economy improves.
