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How Mortgage Rates are Connected to, and Influenced by 10-Year Bond Yields
Mortgage rates tend to follow the 10-year U.S. Treasury bond yields, plus a little extra “risk premium” since mortgages are riskier. Normally, this premium sits around 1.5–2%, but since COVID, it's been higher due to uncertainty, inflation, and a volatile mortgage market.
Lenders have raised the premium to cover their risks. Experts think it’ll return to normal by late 2024 or 2025 as things settle down. While future Fed rate cuts could help ease mortgage rates, don’t expect big drops right away. If you’re buying or refinancing, keep an eye on these trends for better timing!
Disclaimer: This podcase episode was AI Generated from my blog article you can read here.
The information provided on this podcast is for informational and entertainment purposes only. All views and opinions expressed are solely those of the host and guests, and do not constitute real estate, financial, tax, legal, or other professional advice. Every situation is unique, and you should always conduct your own research and due diligence before making any decisions. Please consult directly with qualified professionals such as a licensed real estate agent, attorney, or tax advisor regarding your specific circumstances.
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By Jill and DaveMortgage rates tend to follow the 10-year U.S. Treasury bond yields, plus a little extra “risk premium” since mortgages are riskier. Normally, this premium sits around 1.5–2%, but since COVID, it's been higher due to uncertainty, inflation, and a volatile mortgage market.
Lenders have raised the premium to cover their risks. Experts think it’ll return to normal by late 2024 or 2025 as things settle down. While future Fed rate cuts could help ease mortgage rates, don’t expect big drops right away. If you’re buying or refinancing, keep an eye on these trends for better timing!
Disclaimer: This podcase episode was AI Generated from my blog article you can read here.
The information provided on this podcast is for informational and entertainment purposes only. All views and opinions expressed are solely those of the host and guests, and do not constitute real estate, financial, tax, legal, or other professional advice. Every situation is unique, and you should always conduct your own research and due diligence before making any decisions. Please consult directly with qualified professionals such as a licensed real estate agent, attorney, or tax advisor regarding your specific circumstances.