The 10-Year Treasury yield has been on the rise. As of yesterday, yields floated around 1.36% after staying below 1% for nearly all of 2020. As a result, rates spiked on Monday, and by midweek the 30-year fixed rate mortgage increased 16 basis points while the 15-year fixed rate mortgage increased 14 basis points.
In yesterday’s address to the Senate Banking Committee yesterday, Federal Reserve Chair Powell reaffirmed the Fed’s commitment to keeping benchmark interest rates near 0 and maintaining their $120 billion monthly asset purchases. Experts believe the Federal Reserve probably won’t make any changes in policy until the unemployment rate drops to at least 4% and possibly even lower. Meanwhile long-term interest rates are hiking up in response to a steadily recovering economy. However, not everyone is happy about this development, with investors concerned that these higher rates will have negative effects on their bull market.