AgentIndustry News

Why interest rates are going up

Mortgage market commentary

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Two weeks ago, the 10-year T-note traded under 4.65 percent; yesterday it touched 4.9 percent. Mortgages -- as always, following the 10-year in lockstep -- were trying to break 6.25 percent going down; now they are trying to hold 6.5 percent while going up. The case for holding is poor. Rates are rising because the global economy is taking off. Forget all the thoughts of drag from concerted tightening by central banks, Europe to top out, America to slide near recession on weak housing and manufacturing, Asian exports to be undercut by American weakness. April orders for durable goods ran a 1.5 percent adjusted gain, manufacturing perking back. New claims for unemployment insurance are dead low, the job market just fine. Housing is neither at bottom nor causing a recession. Wall Streeters thought that a 16 percent leap in sales of new homes in April was good news; they'll never get it right: the surge is a sign of panicked builders trying to stay in business, building ...