Mortgage Rates Increased This Week On Strong Economic Data

Mortgage rates have risen this week due to stronger-than-expected economic data and the Treasury's plans to increase the size of its auctions. Despite this, US consumers are still spending, causing upward pressure on bond yields and mortgage rates.

The Federal Reserve's attempts to decrease its balance sheet, coupled with increased government debt issuance, are also contributing to the rise in Treasury yields and mortgage rates. Although there are signs that the Federal Reserve's efforts to combat inflation could soon be ending, there is a possibility of rate increases, according to this week's Fed meeting minutes. Interest rates may be alleviated, but caution is still advised.