The U.S. mortgage market remained agitated this week as bond yields continued climbing, hitting their highest point since 2008. This trend has been going on for a few months now, spurring fear and uncertainty among homeowners, lenders, and investors alike.
Despite the turbulence, the experts in the mortgage industry maintain that a debt crisis is not an imminent outcome of this situation. The increase in bond yields is attributed to high-inflation expectations, an indicator that the economy is recovering faster than anticipated. Moreover, mortgage lenders are currently operating with a lot of liquidity thanks to the Federal Reserve’s asset purchases, which helps support market demand.
Main Points:
• Bond yields hit highest level since 2008
• Fear building among mortgage agents, lenders, investors
• High-inflation expectations indicate economy is recovering faster than predicted
• Federal Reserve asset purchases provide liquidity for lenders
You can read this full article at: https://www.housingwire.com/articles/mortgage-rates-climb-as-us-yields-hit-highest-level-since-2008/(subscription required)
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