Yields on Fannie Mae and Freddie Mac mortgage securities that guide home-loan rates reached their highest levels in four months, suggesting borrowing costs may rise from record lows. Fannie Mae’s current-coupon 30-year fixed-rate mortgage bonds climbed to 3.71 percent as of 9:30 a.m. in New York, tracking 10-year Treasuries today as those yields rose from 3.64 percent to the highest since July 13, according to data compiled by Bloomberg. Yields on the mortgage securities, which typically increase loan rates by similar amounts, have risen from 3.27 percent on Nov. 4. Benchmark Treasury yields have jumped as the Federal Reserve embarks on buying an additional $600 billion of U.S. government debt in a bid to spur economic growth. Higher Treasury rates probably aren’t being caused by concern the Fed’s plan will weaken the dollar or boost inflation, analysts at Barclays Capital led by Ajay Rajadhyaksha in New York wrote.
Mortgage-bond yields that guide home loans soar to 4-month high
Most Popular Articles
Latest Articles
Better taps Chad Smith as new president and COO
Holding company Better Home & Finance hired Chad Smith to be the president and chief operating officer of its mortgage business.
-
Assumable mortgage platform Roam partners with national lender on down payment assistance
-
Rental properties can help agents build a sphere of influence
-
The month in reverse mortgage rates: May 2024
-
DeSantis stamps changes to reverse mortgage tax requirements in Florida
-
NAR board votes to leave dues unchanged in 2025