Mortgage rates are expected to push higher after Tuesday's surge in yields for 10-year Treasury notes and news that two Bear Stearns hedge funds that invested heavily in bonds backed by subprime mortgages may be near collapse. The yield on 10-year Treasury notes hit 5.15 percent Wednesday -- an increase of six basis points in 24 hours that could also push up mortgage rates. Freddie Mac's June 14 survey showed the rate on 30-year fixed-rate mortgages jumping 21 basis points in one week, to 6.74 percent, an 11-month high. News that a creditor of the two Bear Stearns hedge funds, Merrill Lynch & Co., was seizing $800 million of bonds held as collateral raised the possibility of further tightening of credit in subprime lending. If that happens, home buyers with blemished cred...
Get Inman via Facebook Messenger
Our top headlines delivered once a day.