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Mortgage rates moved decisively higher this week as the inherent bond market eventually started shifting gears. After the Fed meeting in June, rates moved to the lowest rates in more than 2 decades and was holding at a narrow range since then. The risks of a breakout were put to increase as the market digested several key events. One of the most important of those events was that this week’s congressional testimony by Fed Chair Powell. Interestingly , Powell’s testimony really helped speeds in the beginning. At the 2nd portion of the testimony yesterday, there was not much of a market reaction. On the contrary, it was more powerful economic data and poorly received Treasury auction that pummeled the bond market. As bonds weaken, rates increase. Not all creditors completely adjusted their speed sheets to reflect yesterday’s…(read more)