Want to know where interest rates are going

Want to Know Where Interest Rates Are Going?

Forget the Fed—Watch the 10-Year Treasury Yield!

The 10-year Treasury yield is the interest rate the U.S. government pays when it borrows money for 10 years. Think of it like a loan—just like you pay interest on a car or house loan, the government pays interest to people who buy its bonds.

This number is important because it affects other interest rates, like mortgage rates. When the 10-year Treasury yield goes up, borrowing money (like getting a mortgage) usually costs more. When it goes down, borrowing gets cheaper.

Why Does This Matter for You?

• They move together – When the 10-year Treasury yield rises, mortgage rates also tend to rise. When it falls, mortgage rates often drop.

• Mortgage rates are always higher – Lenders charge extra fees for risks and processing, so mortgage rates are a bit above the Treasury yield.

• It shows how the economy is doing – If the economy is strong, the Treasury yield and mortgage rates might go up. If it's weaker, they might go down.

Bottom line: If you want to know where mortgage rates are headed, pay attention to the 10-year Treasury yield—not just what the Fed says!

“Movement in the 10-year Treasury has a significantly larger and more direct impact on mortgage rates than the federal funds rate.” – Fannie Mae

Good news! Mortgage rates are down this week. If you’re thinking about buying or selling, this might be a great time. Let’s talk about your best move!

Check current mortgage rates here.

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As always, if you have any questions, please don’t hesitate to reach out to us! If we don’t have the answer, we’ll point you in the right direction.