It could be either a) investors are starting to consider MBS the equivalent of a Treasury Bond since both are backed by the US government or b) the Fed is buying MBS in order to keep the rates low to keep the housing market up.

I think this means I need to borrow some money while it’s cheap.

If the 10 year stays elevated, mortgage rates will likely have to follow. Unless bond investors become a lot less risk averse than they've been historically.

You need to consider the short term treasury bills market which has falling yields. Jeff Snider points out that there are several examples where falling yields in treasuries were a leading indicator for a collapse in long bond yields.

It's possible that mortgage rates are following the same trends driving treasuries and are actually indicating where things are going more than the other way around.

It means foreigners are dumping treasuries....They do not own mortgages. No one but the Fed buys newly issued mortgages at these rates!

spreads are wide between the 10 year and the mortgage rate. Originators don't need to raise mortgage rates

Because....."Markets".
LOL....

Meanwhile, an auction for $60 billion two year treasury notes just completed with a yield of 0.119%. We're pretty much at zero percent. The continuing decline in shorter term notes is a better indicator of what's happening than the long bond.

"Mortgage rates and the 10-year treasury yield have gone opposite ways. This is not normal."

There is nothing that is normal anymore. All one has to do is look at the FED's balance sheet.

I just don't see how 10 years or mortgage rates can go higher? Maybe a little bit for a short time but any sustained, upward move would DESTROY the economy on life support now.

If the FED is buying 30 year and neutral on the 10 year; then it is trying to stimulate the real estate market while giving banks some room to increase their spreads beween deposits and consumer credit.

You think mortgage rates need to increase?

The Fed has been buying $40B/mo of GSE debt; that's one-half of the level that it's been buying for the US legislature/administration in treasury purchases. No wonder mortgage rates haven't moved. The split is incredible.