Meanwhile, the thirty-year fixed-mortgage rates increased to 3.82%, compared to the previous week’s average of 3.74%.

Moreover, mortgage-bond yields are rising faster than Treasury yields. For instance, Fannie Mae bonds showed yields of 1.05 percentage points more than those on five- and 10-year Treasuries, the widest spread since November.

Nevertheless, Scott pointed out that the sell-off could have been worse. Banks are stepping up their purchases to take advantage of the yield increases, helping “make this move very orderly versus what could have been expected, given the magnitude of it.”

iShares MBS ETF

For more information on the fixed-income market, visit our bond ETFs category.

Max Chen contributed to this article.

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