Mortgage Rates Forecast - Rates Move Higher This Summer?

The current mortgage rates forecast will depend greatly on the movement of the 10 year treasury rate.  Currently, we are seeing the 10 year treasury rate at the bottom of an upward trend channel that started at the beginning of 2009.  There is a very strong correlation between the 10 year treasury rate and the 30 year fixed rate mortgage.  If we see the 10 year hold support around 3.4% and moves higher after testing this support, we are very likely to see average mortgage rates move higher.