Stock Influences
What is worth noting and could work in our favor is the fact that the last time yields were in this area, concerns about their impact on corporate borrowing and economic growth caused a huge sell-off in stocks. That in turn led to funds moving into bonds, driving yields and mortgage rates lower. One could argue that we are ripe for a sequel to that story, although stocks are not as high now as they were when that last happened. However, until we actually see the sell-off in stocks start or yields retreat below 2.91% on their own, there is a fairly high risk of rates moving higher in the immediate future.