Even though the Fed said they’re remaining “patient” as they watch the economy with regard to interest rate moves, the markets apparently are already preparing for the first rate increase in nearly nine years. The Dow has struggled to comfortably make it past the 18,000 mark and the multitude of softrates highest for 2015 economies around the world should drive more investors to continue to pour money into bonds and U.S. Treasuries. Yet that hasn’t been the case.

Freddie Mac reported yesterday the 30 year fixed rate rose yet again but this time to its highest level of 2015. According to the survey, the 30 year fixed rate loan rose seven basis points from 3.69% to 3.76%. The 15 year note broker through the 3.00% mark from 2.99% to 3.05%.  Various economic reports released this week had little impact but indicating nothing like an impending freefall in the economy nor a robust recovery.

Yet holders, buyers and sellers of mortgage bonds like to be ahead of the curve. While no Fed member voted to raise rates at the last meeting there are investors who think June will be the start of a return to normalizing the cost of funds, away from the near-zero mark. If we continue to see interest rates gradually increase over the next two weeks in spite of marginal economic reports, by the time the Fed makes a move, investors will have anticipated the rate increase and priced that into the price of mortgage bonds when they sell.