The 30-year Treasury yield surged to a 19-year high of 5.21% today after investors rejected Fed Chairman Kevin Warsh’s decision to hold rates steady – choosing instead to dump bonds in response to rising inflation data. 12.3% Mortgage Rates by 2027? In my May 2026 Timing Letter, I made the case for mortgage rising to 12.3% by 2027. Record Home Prices, 6.66% Rates Crush AffordabilityU.S. housing affordability has already deteriorated to a near-historic low, driven by the compounding pressure of record-high home prices alongside a recent surge in 30-year mortgage rates to 6.66% (Freddie Mac). If rates rose to 12.3% and U.S. housing prices remained unchanged, the PI payment on a $100,000 mortgage at 12.3% would be 63% greater than at 6.66%.