MarketWatch – Capitol Report
With the government reporting surprisingly good jobs news on Friday, the 10-year Treasury yield posted a large jump, signaling that mortgage rates may see yet another jolt higher in coming days. The 10-year Treasury yield rose almost one-quarter of a percentage point to 2.74% on Friday. The last time there was a similar-sized jump up was in August 2011. Weekly mortgage rates, which often trend in the same direction as Treasury yields, recently pulled back. But given Friday’s yield surge, this Thursday’s weekly mortgage-rate report from federally controlled mortgage buyer Freddie Mac could show a large gain. The average rate on the 30-year fixed rate mortgage hit a trough of 3.35% in early May, according to Freddie Mac /quotes/zigman/226335/quotes/nls/fmccFMCC. Since then, the rate has increased almost one full percentage point, though levels remain relatively low.