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Yields hit housing bubble levels. Get ready for higher rates

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A ballooning deficit and higher inflation could keep long-term interest rates elevated.
The article from Fortune, published on May 23, 2025, discusses the alarming rise of yields to levels last seen during the housing bubble, signaling a potential shift towards a world of higher borrowing costs. It highlights how the 10-year Treasury yield has surged past 5%, a threshold not crossed since the mid-2000s, which could lead to increased mortgage rates and impact the housing market significantly. The piece also notes that this rise in yields is driven by persistent inflation and a robust economy, prompting investors to demand higher returns. As a result, businesses and consumers might face steeper borrowing costs, potentially slowing down economic growth and affecting investment decisions across various sectors.

Read the Full Fortune Article at:
[ https://fortune.com/2025/05/23/yields-hit-peak-housing-bubble-levels-get-ready-world-higher-borrowing-costs/ ]