Mortgage rates rose on the week, reverting back to recent highs. As has happened several times in the past few months, last week’s retreat in rates proved to be only temporary, as rates resumed their ascent in recent days.

Mortgage rates have been pushed upward in the first quarter by general improvements in the economy, rising inflation expectations and the likelihood that more Treasuries will be issued to support the federal government’s plans for fiscal stimulus and other spending initiatives. Treasury yields – which generally dictate the path of mortgage rates – rose modestly on Wednesday after President Biden unveiled the details surrounding his proposed infrastructure plan. In general, as the economy continues to thaw from its pandemic-induced freeze and government spending increases, upward pressure on mortgage rates should remain.

A key test of the economy’s recovery efforts will come from the March job figures which are due to be released Friday. A strong report would reinforce the notion that the economy is primed for strong growth in the months to come and would likely result in more upward rate movements.