Buying a home just got a little more expensive.
Mortgage rates, which loosely follow the 10-year Treasury, hit their highest level since the end of March, breaking out of a tight range where they had been sitting for weeks. The move came as bond yields surged higher.
While the increase won't mean a lot in terms of the average monthly payment for a homebuyer, it could be signaling the start of another steady rise, which we saw at the start of this year.
"Rates are in the midst of a serious, threatening move higher," wrote Matthew Graham, chief operating officer at Mortgage News Daily. The bond yield surge Thursday "brought additional confirmation of the end of the friendly springtime consolidation trend, and it took us one step closer to the highest yields in more than four years."
As the average rate on the 30-year fixed moves past 4.6 percent, talk of 5 percent comes back into play, and that is an emotional barrier for both buyers and sellers.