Interest Rates to Rise?

According to Bloomberg.com, it is noted that the 10-year Treasury note yield climbed from 3.548% to 3.748% and a couple days later ended the week at 3.80%

Reasons?

It seems that the markets are in a positive move and optimistic for the future of our economy. There was a slight rise in employment and personal income had a slight growth. This in turn encourages investors and stocks are starting to show higher numbers. When these triggers happen, the interest rates begin to rise.

Most analysts have tried to assure us that inflation won’t begin seriously for many months; however, the improving economy will cause the Federal Reserve to cease its support of lower interest rates earlier than expected.

When the 10-year note rates rise, existing Treasury notes become less valuable providing lower yields. This furthers the dominos effect as investors raise rates further and sell off their Treasury securities when they feel their holdings are losing value. Since there is a narrowing spread between the 10-year note and the 30-year mortgage rate, this suggests that mortgage rates will probably start rising.

To those potential buyers still sitting on the fence,  I'd be making plans soon to get serious about buying a home, take advantage of the low interest rates and the  8K tax incentive for new home buyers or the 6.5K to those buyers who have been in their home for at least 5 years while you can! Don't fall into the category of the...if only I had bought when the market was...