How the 10-year Treasury Guides 30- year Mortgage Rates (A Simple, Practical Guide)
Posted by Alan Castleman on
How the 10-year Treasury Guides 30-year Mortgage Rates (A Simple, Practical Guide)
Why do mortgage rates jump after a headline? Because lenders watch the 10-year Treasury yield like a hawk. Most 30-year fixed rates track that yield plus a spread that covers lender costs and risk. The bottom line is simple: when the 10-year rises, mortgage rates usually rise, and when it falls, mortgage rates usually fall.
That spread has been wider than old norms in recent years, thanks to bigger market swings. You will get a clear rule of thumb, real numbers you can test, and quick tips to time a rate lock.
What the 10-year Treasury is and why it guides 30-year mortgage rates
Meet the 10-year Treasury: a simple yardstick for money
A Treasury note is…
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