Last Wednesday was a rough day for interest rates. Thursday then started out with a little bit of promise, but that was short-lived as mortgage-backed securities sold off in waves.
They went from bad to worse.
Bonds ended the day at their worst levels, with all lenders repricing for the worst and some more than once. Mortgage bonds have not sold that low since November 2023.
There was a slight reprieve Friday, possibly due to Iran’s offer to reopen the Strait of Hormuz. Until there is a definitive resolution in the Middle East, though, many believe rates are likely to remain elevated compared to recent years.