An optimistic testimony on Capitol Hill from Federal Reserve Chairman Jerome Powell sent Treasury yields higher as Powell stated his outlook for the economy has strengthened since December.

The 30-year fixed mortgage rate jumped three basis points to reach 4.43 percent. The benchmark 30-year rate has been on a tear in 2018, climbing 48 basis points since the start of the year and increasing for eight consecutive weeks. The 30-year fixed mortgage rate averaged 4.33 percent in February, up 30 basis points from last month and the highest monthly average since April 2014.

Historically when mortgage rates surge, housing swoons, according to Freddie Mac. Freddie Mac reports strength in the economy and pent up housing demand should allow U.S. housing markets to post modest growth this year even with higher mortgage rates. Early indications are that housing demand remains robust to these rate increases. The MBA reported in its latest weekly applications survey that home purchase mortgage originations were up 3 percent from a year ago.