That Was Fast: 30-Year Fixed Mortgage Rate Spikes to 6.18%, 10-Year Treasury Yield to 3.43%. Home Sellers Face New Reality | Wolf Street

The average 30-year fixed mortgage rate today spiked to 6.18%, from 5.85% on Friday, according to the daily index by Mortgage News Daily. Aside from the sheer magnitude of the spike, this was also the highest mortgage rate since collection of the daily data began in April 2009. This was lightning fast, with mortgage rates nearly doubling since the beginning of the year (chart via Mortgage News Daily):

Freddie Mac’s data goes back to the early 1970s (though the June 9 release lags today’s daily measure by about a week). It shows just how fast mortgage rates have bounced off from record low levels, and how comparatively low they still are:

So let’s see. The Greenspan Fed ginned up the idea to cut interest rates following the dotcom bust to create a housing bubble in order to take over from the imploded stock market bubble. This worked, and we got a housing bubble, to which the Fed responded by raising interest rates again to over 5%, which worked and caused the housing bubble to implode, which triggered the mortgage crisis, which performed a rug-pull under the over-leveraged banks, upon which the Fed rolled out its new dual-weapon QE and 0% interest-rate policy, which worked, and it inflated all asset prices, bailed out the bondholders and stockholders of the banks, and soon it triggered the next housing bubble, but much more magnificent than anything before, etc. etc.

That Was Fast: 30-Year Fixed Mortgage Rate Spikes to 6.18%, 10-Year Treasury Yield to 3.43%. Home Sellers Face New Reality | Wolf Street