Long-Term Rates Will Edge Higher
When the Federal Reserve signaled in June that it expects to raise short-term interest rates by the end of 2023—sooner than an earlier forecast—the response was immediate and fierce. The Dow Jones industrial average dropped more than 800 points, and the price of the 10-year Treasury note also dropped, increasing the yield to nearly 1.6%. Rates on 30-year mortgages rose above 3% for the first time since April.
The backdrop to all this worrisome news was rising inflation, which prompted some to recall the dark days of the early 1980s, when the
