As the 10-year Treasury yield approaches 3 percent let’s take a look at the recent spike in mortgage rates and its micro impact on the housing market and average home buyer. The chart below shows 30-year fixed mortgage rates have increased 122 basis points since early May. This translates into a 17 percent increase in the monthly payment on a $300K mortgage, for example from $1,313 to $1,538 per month (see Matrix).
If Houses Traded Like Bonds
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