Indulge me for a moment in memories of 2007. It was a time when gaucho pants were inexplicably cool, Apple was about to release a brand new iPhone and, yes, the yield on the 10-year Treasury note topped 5%. It feels like forever ago, except wait — those things are all true now, too.
Mortgage interest rates are generally benchmarked to the yield on the 10-year Treasury note, and this week that yield hit its highest level since 2007. Rising treasury yields have been pushing mortgage rates higher for a while, and now, as the 10YT has reached a nearly 20-year high, we're also seeing mortgage rates rise above 7%.
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