Industry News & Links of the Day – 1/3/11

USA Today – Bonds’ Dramatic Year Sets Stage for Higher Interest Rates – It was a dramatic ride for bonds and the mortgage market in 2010 as an economic crisis in Europe and “quantitative easing” helped push down yields to levels not seen since the 1950s. The new year may be just as eventful, but one where higher rates are likely.

Yahoo! Finance – Treasuries Tumble as U.S. Manufacturing Expands at Fastest in Seven Months – Treasuries extended the biggest monthly rout in a year as data today showed manufacturing grew in December at the fastest pace in seven months and construction spending increased in November.

CNBC – Fed Unlikely to Raise Rates Until 2013: Goldman’s Hatzius – The Federal Reserve likely won’t add any more stimulus to the economy this year but will probably hold off on raising interest rates until 2013.

Bill Berliner – Mortgage Market Predictions for 2011 – While not quite the same as the agonies of 2007 and 2008, 2010 was another calamitous year for the mortgage and MBS markets. Here are my expectations on a variety of topics for 2011.

Portland Press Herald – Average Cost of Gas Tops $3, a Two-Year High – For the first time in two years, the average gas price is higher than $3 a gallon, sucking money from drivers’ wallets and, experts worry, possibly hampering the economy’s rebound.

National Mortgage News – Will Brokers Sue the Federal Reserve? – Loan brokers of many different stripes have been contemplating suing the Federal Reserve over its loan officer compensation rule. And it appears that if the Fed doesn’t start communicating a little better with the mortgage industry, the central bank may find itself in court some time next year.