2016 Reminds Us How Completely Crazy Next Week Could Be For Rates

The 2016 election won’t soon be forgotten in the mortgage or bond markets. Many of the predictions were dead wrong when it came to how interest rates would react to a Trump victory, and the reason ended up being very simple in hindsight. Are there any parallels that can help us prepare for the coming week?
First off, let’s be clear on what we’re discussing.  A picture is worth more than words in this case.
10yr Treasury yields are the best indication of the longer-term bond market.  Mortgage-backed bonds (which determine mortgage rates) tend to move in a substantially similar way over time.  As such, it was no surprise to see mortgages walk a similar path.  In short, interest rates got rocked (in a bad way).
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Source: mortgagenewsdaily.comNew feed