Four 2018 Rate Hikes And Spiraling Debt: What Could Possibly Go Wrong?

If the Fed raises its target range for the federal funds rate four times this year – so to a range of 2.25% to 2.50% in December – and if the still relatively flat yield curve remains relatively flat without steepening, the 10-year Treasury yield would reach about 3.85% by December.

But if the yield curve steepens toward a more normal-ish slope, it would push the 10-year yield somewhere near or above 4.5% by the end of this year. And this would likely cause the 30-year fixed-rate mortgage rate for top-tier borrowers, which is currently at around 4.5%, to rise above 6%, by the end of December.