MORTGAGES HIT 7.28% AS 10-YEAR TOUCHES 2007 LEVELS

The 30-year mortgage rate jumped to 7.28% this week, its highest since November 2023, while the 10-year yield $TNX closed Thursday at 5.24%, a level not seen since 2007. The St. Louis Fed explained the link on Sunday: mortgages track Treasuries and mortgage-backed securities, not the Fed's overnight rate. And that link has tightened. In late 2023 the gap between mortgages and the 10-year was almost three points; today it is about two. With the old gap, home loans would already be above 8%.