Bad news: Rates Spike To 7 Year Highs. Good news: Economy Strong

Major bond market selloff today. Below are some important reads on both sides. Bad news: Rates rise when bond prices drop in a selloff, and 30-yr mortgage rates now moving into 5% range. Good news: bonds are selling because the economy is improving. Most recent rate projections from the MBA called for 4.7% rate range by end of year, and we’re now almost .25% above that. They revise monthly, so we’ll see in a couple weeks if end-of-year projections are revised.

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