Treasury bonds

The 10-year U.S. Treasury yield rose to its highest level since 2011, extending a selloff in the world’s biggest bond market and raising fresh questions about how high America's borrowing costs will climb.

If 10-year Treasury yields remain at or above 3%, the average 30-year fixed-rate mortgage could hit 5% sooner than previously expected.

Yields on the 10-year Treasury hit their highest level since the start of 2014 and got very close to cracking the 3% mark, signaling a potential spike in mortgage rates.

As inflation fears put upward pressure on 10-year Treasury bonds and mortgage rates nationally, borrowers could start to take more notice of what lenders are charging them locally.

Financial firms have mostly shrugged off the government's budget woes, but Washington's gridlock might pose a bigger risk than they think.

The tax reform bill Congress sent to President Trump's desk this week is likely to prompt at least a short-term spike in mortgage rates.