I see lots of concerns out there about how the rise in bond yields and mortgage rates is going to kill the nascent recovery. To keep things in perspective I offer this updated chart, which contains data as of today from BanxQuote, and reflects "U.S. & Regional composite mortgage rates."
I note that conforming rates have jumped by a full percentage point from their lows of last March. But current rates (5.75%) are still well below the average rate (6.5%) of the past 11 years. I don't see that as a killer, and jumbo rates have hardly risen at all from their lows. Rates have been pushed up by rising confidence that the economy is coming out of a recession, and signs that housing markets are bottoming in many areas of the country. As such, rising rates represent rising demand for loans (the flip side of which is falling demand for bonds, especially the Treasury bonds that drive investor desire for mortgage-backed securities). Rising demand shows no signs of carrying with it the seeds of its own destruction. It would take a concerted effort by the Fed to push rates up to nip this recovery in the bud.