Mortgage Mayhem

Mortgage rates are getting hit twice over. On 9/27/22, the 10-year Treasury briefly hit 4%, up from 1.52% on 12/31/21, the fastest rise since 1981, as inflation fears worsen. Additionally, the spread between the rising 10-year Treasury and the 30-year mortgage is approaching 200 bps, the largest gap since the Fed raised rates during the Housing Bust. The gap is so large because investors fear more unexpected rate hikes and want protection.