General Bond Trends
Yesterday was an ugly day for the bond market and mortgage rates. There is no other way to describe it. Despite a relatively muted reaction to the FOMC events Wednesday afternoon, bonds started off weak yesterday and selling snowballed throughout the day. The sell-off pushed the benchmark 10-year Treasury Note yield to its highest level since 2010, causing widespread upward revisions to mortgage pricing. It remains to be seen if this spike has peaked yet, but at some point in the immediate future we should see a nice correction that brings rates back down a little.