Rates on the rise. . .Why?About 2 weeks ago I had indicated that "we are in a bubble" and rates would drop and then rise. Well . . . Rates dropped from about 5.875% to 5.5% and have since retreated and gone back up to as high as 6.125% today. The question is why? Hindsight of course is always 20-20. However the reality is that factors affecting the price of mortgage bonds is really pretty simple to ascertain. You look at aggressive rate cut by the Federal Reserve coupled with stronger housing, and today's revision of GDP (gross domestic product: measure of all goods and services produced by US both on and off American soil) coming in at .9% vs. .6%; you look at yesterday's and today's extremely weak T-bond auctions where investor participation was only 16% vs. the 3 year average of 33%; finally we see inflation abroad in England at 3.6% on an annualized basis. So what does all this "stuff" mean? Higher global inflation along with over supply of bonds and we saw rates on the rise. So for all of the Zillow clients who were or still are sitting on the fence, take advantage of this service and the quoting and understand that rates plain and simply are on the rise! Mortgage bonds have been testing the 200 day moving average for the price of bonds all week. Yesterday they crushed below the 200 day average and have remained well below today. Only 3 times in the last 3 years have the price of mortgage bonds dropped below the 200 day moving average. And that my friends signals a significant changed in direction for rate. Quite frankly . . . Mortgage rates are now and for the forseeable future on the rise. So lock em if you got em and be safe with your money!May 29 2008 - US22YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.