Mortgage Refinancing Will Likely Continue To Slow (TREE, RATE)

The most common mortgage product is the 30-year fixed loan, which has the rate based off the 10-Year Treasury. Sadly, for homeowners looking to refinance their current home loan or new buyers, the yield on the 10-year treasury has risen to 4% this morning, which is the first time since October, according to Bloomberg.

Essentially, the rise in the 10-year yield means that you the homeowner and the potential home buyer will be paying a higher rate of interest on your home loan.

According to Bankrate.com's weekly national survey, this week the average 30-year fixed mortgage rate rose to 5.95%, which is up from 5.65% last week and up over a full percentage point from the recent lows.

The average 15-year fixed rate mortgage jumped to 5.37% from 5.06% a week ago.

The higher rates could obviously slow down an already slow real estate market and could spell trouble for the shares of Bankrate (Nasdaq: RATE) and LendingTree (Nasdaq: TREE).

As mortgage rates have dropped over the past few months, Tree.com's shares have also participated in the mortgage rally and have skyrocketed 132% in three months. Additionally, Bankrate's shares have risen 45% in the last three months.

If the 10-year treasury continues to rise, investors should expect the real estate market to take a hit and for stocks like Bankrate and Tree.com to be under some pressure. And, yes, Jim Cramer will once again be wrong on calling the bottom in housing (several months ago he said the bottom in housing will occur in June. He has called the bottomed several times before, but this time he said this was his final call and it was as good as taking your money to the bank).

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