Posts Tagged ‘treasury bond’
The 10-year Treasury bond yield significantly impacts mortgage rates, particularly fixed-rate mortgages, for several reasons. Here’s how:
Benchmark for Mortgage Rates The 10-year Treasury bond serves as a benchmark for 30-year fixed mortgage rates because both are long-term financial instruments. While mortgages typically have longer durations, lenders look at the 10-year yield to price mortgage rates since most borrowers either sell or refinance within 7-10 years. Yield Movements and Mortgage Rates Correlation…
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