The 10-year yield is under 5%. Are sub-7% mortgage rates next?

The 10-year yield has gone wild today, but not to the upside — it’s down as I write this, at 4.97%. What is really going on over the last few weeks? Let’s discuss a series of events that finally pushed the 10-year yield below 5%. On the HousingWire Daily podcast, I’ve been talking about how October was going to be a wild month as midterms loom, but today we are going to explain a series of events in the 10-year yield that we’ve been discussing since September. The 10-year yield didn’t rise above 5.35% The most important thing that’s happened in the last few weeks is that the 10-year yield has held that key level around 5.35% — which I have talked about in many articles and discussed on the podcast. The most important thing is that the key technical level of 5.35% has held, and bond traders get very nervous if a key level doesn’t break, so they tend to go the other way, and that is the No. 1 story for October. If the 10-year yield had broken above that level and got follow-through selling, we could have had a wild October — but to the upside. We found out the AI God can bleed One of the biggest reasons why the 10-year yield has moved higher toward 5.35% this month is that the Federa...