Since there is a possibility, however slight, that mortgage rates will break 10%, it's useful to see what has happened in the past when rates did break this barrier and whether there was a corresponding increase in activity in adjustable-rate loans. There were three major periods that we can examine: 1974, 1978, and 1987.

The period in 1974 occurred about July as Fannie Mae net yields climbed to more than 10%. When servicing is added, street rates probably started hitting 10% by June.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.