Mortgage rates rise to highest levels in two months

“In a surprising move, the yield on the 10-year Treasury, a benchmark for mortgage rates, dropped a good bit after the conclusion of last week’s Fed meeting,” said Michael Becker, branch manager of Sierra Pacific Mortgage in Lutherville, Md. “This despite the Fed talking about raising short-term rates sooner and tapering their purchases of Treasurys and mortgage-backed securities. Most expected the sell-off in bonds to continue, and mortgage rates to move higher. I think markets are concerned about the economy after much of the fiscal stimulus wanes in a few months and agree that current inflation is transitory.”