The fallout from President Trump’s global trade war continues to roil markets, with investors pulling out of even traditionally safe U.S. government bonds. If this trend persists, it could spell trouble for home buyers and homeowners in the months ahead.
Treasuries, typically a haven during uncertain times, have sold off sharply this week — an unusual move that reflects growing investor unease. U.S. government bonds are generally viewed as a secure place to park money when markets turn volatile.
This shift matters because the 30-year mortgage rate is closely linked to the yield on the 10-year Treasury note. In simple terms, when Treasury yields rise, borrowing becomes more expensive — potentially leading to higher monthly payments for those taking out new mortgages.
The issue took center stage this week as bond prices plunged (and yields soared). On Wednesday, the 10-year yield whipsawed following President Trump’s…
