2-year bond yields have been ramping up. They hit a new 7-month high on Thursday.
On Wednesday they rose 13 basis points, the biggest 1-day jump since last October.
It wouldn’t be a shock to see 2-year fixed mortgage rates taking the up escalator as well.
That’s too bad because 2-year mortgages have been a nice alternative to variables and 1-year terms. They’re slightly more expensive but offer more protection from rising rates. Moreover, 2-year mortgages don’t lock you into inflated variable-rate premiums for 4-5 years.