09/26/2026
Bond yields surged this week, pushing mortgage rates sharply higher as investors reacted to mounting evidence that the economy remains stronger than expected and inflation pressures may be difficult to contain. The 10-year Treasury yield climbed above 5.2%, its highest level since 2007, while mortgage rates moved back above 7%. Economic reports reinforced the view that the economy remains surprisingly resilient. U.S. business activity expanded in September at its fastest pace in more than five years, weekly unemployment claims fell to just 197,000, and August retail sales rose a stronger-than-expected 1.2% from July and 6.0% from one year ago. The housing market also showed some resilience, with new-home sales increasing 6.4% in August, although the median price of a new home was 5.8% lower than one year ago.
Bond yields surged this week, pushing mortgage rates sharply higher as investors reacted to mounting evidence that the economy remains stronger than expected and inflation pressures may be difficult to contain. The 10-year Treasury yield climbed above 5.2%, its highest level since 2007, while mortga...
