10 yr Treasury Bonds, Mortgage rates rise
Rates on 10 Year Treasury bonds have been rising sharply in the past 2 months just recently hitting a 5 year high. 10 Year Treasury Bonds are the closest comparable to 30 year mortgage rates which just hit 6.5% on average as of today.
The chart below is courtesy of Yahoo! This is a one year chart and yields have just edged over the 12 month high although not indicated on the chart, today's yield is 5.27%. There have been several dramatic days in the last week so it will be interesting to see whether yields hold at these levels, correct down a little or go even higher. Bonds usually don't have this kind of volatility and there are technical and market forces that are affecting yields as mortgage lenders and other bond buyers have to cover their bets when certain thresholds are reached or breached. We have seen this in the past week at both 5.0% and 5.25%.
Watch the inflation news, core and non core. Core is considered inflation less inflation. 
Core doesn't consider whether food or energy go up or down and after all, since none of us eat or drive every day, it doesn't matter if prices in food and energy go up or down. On a positive note, gas prices seem to be coming down a little bit since Memorial Day.
