The link between the 30-Yr. Mortgage Rate & the 10-Yr. Treasury Yield!

Are you concerned about the future of mortgage rates? Allow us to break it down for you!

Understanding the link between the 30-Year Mortgage Rate and the 10-Year Treasury Yield can be beneficial. These two variables have historically moved in lockstep, with an average spread of 1.72 percentage points during the last 50 years. Mortgage rates tend to rise when the Treasury Yield
rises, and they tend to fall when the Yield falls. However, due to market uncertainty, the disparity between the two is currently widening beyond the average.

But there is some good news! Based on the historical spread, mortgage rates have potential to rise today. According to experts, as long as inflation is low, the spread and mortgage rates may fall in the second half of the year. Although rates may not revert to their historical average, there is a chance that they will fall, creating opportunities for home buyers like you!

According to Forbes, while interest rates may remain elevated due to economic uncertainties and Federal Reserve policies, they may fall later this year, barring any unexpected surprises. As a first-time home buyer or an existing homeowner looking to move to your dream house, staying
educated about mortgage rates and expert estimates will help you make smart selections.

Don't let the details overwhelm you! Keeping an eye on mortgage rates and expert advice can help you on your home-buying journey.

Click the image below to learn more about what Cassie and James can do for you if you're thinking about buying a home. We work with some of the very best mortgage professionals in our area, and we would be happy to arrange an introduction.