Good news for the financial markets has interest rates skyrocketing and dreams of a refinance rally fading.
The Dow Jones Industrial Average was up more than 350 points today, pushing the widely watched index well above 12,000.
Behind the surge in stocks was word of a deal between Greece and its creditors to write down half of its bond debt.
Also fueling the activity was a strong report on U.S. gross domestic product.
But as investors raced to move money from bonds to stocks, bonds took a beating.
The yield on the 10-year Treasury note was around 2.40 percent in early afternoon trading. The 10-year price, which moves in the opposite direction of the yield, sank 1 20/32.
The 10-year yield had been as low as 1.80 percent earlier this month.
The latest uptick likely means that mortgage rates will come in around 20 basis points higher next week.
Freddie Mac reported today that the average 30-year fixed-rate mortgage was 4.10 percent, a basis point better than last week. The 30 year had fallen below 4 percent in the week ended Oct. 6.
While new refinance activity had been building — with the Refinance Mortgage Market Index reaching 265 on Sept. 23 — activity has since retreated. Last Friday, the refinance index sat at just 170. The latest rate movement is likely to drive the index lower.
