5.25.21 The Relationship Between Treasury Yields and Mortgage Rates
Mortgage rates are still around all-time lows but they may be headed higher. The 30-year national average mortgage rate hit an all-time low of 2.82% back in February, but with the U.S. economic recovery in full swing, mortgage rates have started to move higher. The Bankrate 30-year national average mortgage rate is currently 3.1%; however, that is still well below the 20-year average mortgage rate of nearly 5%.
“Higher Treasury yields typically mean higher mortgage rates,” according to LPL Financial Fixed Income Strategist Lawrence Gillum. “We expect the 10-year yield to end the year between 1.75%-2.0% so mortga
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