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After moving in a very narrow range for most of 2010, mortgage rates broke out yesterday, moving up approximately .25% so far, from 4.75% to 5% for well qualified buyers. Sentiment seems to be that rates may pause before resuming a climb. There were a number of reasons for this jump: a positive Durable Goods Order report, weak demand in the latest Treasury auction, and better than expected empoloyment numbers.

Interestingly, because our rates have been so stable so far this year, and yesterday and today have been so volatile, we went from the lowest rates of the year to the highest rates of the year within 24 hours! We have been predicting a rise in rates since late last year and would have expected it to happen before now, but it looks like indeed the best rates are in the rear view mirror.

Check out out Rate Lock Advisory page to get some guidance on a rate lock for your own situation. At this point, most of the damage has probably already been done and your short-term risk is limited. However, long-term risk is high as rates will likely moved upward through the Summer months.