Local mortgage rates could take on a much larger role with the 10-year treasury bond climbing to 3%, according to a recent report. There has been some concern over the correlation between the bond and mortgage rates which have shown a near direct effect on one another.
"Typically when the 10-year Treasury moves around a lot, you'll see mortgage rates follow," said Leonard Kiefer, deputy chief economist at Freddie Mac, according to National Mortgage News.
"The rate [consumers] are likely to get on a mortgage is going to tie very closely to what happens with the 10-year. It's not exactly one-for-one, but if you look historically week-to-week, the correlation is super high, so an increase in the 10-year yield is going to mean higher mortgage rates in all likelihood."
That being said, the effect is not immediate in any sense. This week some companies did not show a reprice but it isn't out of the ordinary for some lenders to reprice multiple times in one day.
To learn more about what the 10-year treasury bond spikes could mean for mortgage rates and repricing, click on the image above.