30-Year Treasury Yield Spikes Past 5%, 30-Year Mortgage Rates Hit 8%, Mortgage Applications Plunge

October 19, 2023

by Wolf Richter Wolf Street

Bond Bloodbath, Housing Market in Deep-Freeze, as delusions fade.

Today it’s the 30-year Treasury yield that pierced the 5% line. It currently trades at 5.02%, the highest since August 2007.

The first of the long-term yields to spike through the 5% line was the unloved 20-year Treasury yield on October 3; it currently trades at 5.25%.

These long-term yields above 5% are an indication that a form of normalcy is gradually being forced upon the bond market by the resurgence of inflation, and by the belated realization that this inflation isn’t just going away on its own somehow. This is a huge regime change, after years of the Fed’s QE and interest rate repression, and all prior assumptions are out the window.