Mortgage interest rates pushed a little higher today on economic news considered somewhat postive. MarketWatch reports on what’s behind higher mortgage interest rates:

“Mortgage rates followed the increase in bond yields this week as the May employment report showed that the economy lost fewer jobs than the market consensus had expected,” said Frank Nothaft, Freddie Mac vice president and chief economist, in a news release.

Interest rates had already been moving higher, prompting a drop in mortgage applications. With employment data improving, and evidence (through retail sales) that consumer spending might be on the rise, there are hopes that the worst of the recession is over. As a result, fewer people are interested in the safety of Treasuries. With demand decreasing, Treasury yields are higher, in an effort to woo investors. These higher yields are leading mortgage interest rates higher, since long term Treasuries have a great deal of influence.