Mortgage interest rates

[Zoe]

This is good article. It explains how long term mortgage rates are tied to the 10 year treasury bond which is considered one of the safest investments.

Even if Federal Reserve Bank drops interest rates, it won't necessarily have an impact on long term mortgage rates on housing.

https://www.thestreet.com/real-estate/fed-says-mortgage-rates-falling-hinges-on-crucial-measure

The said T bill rate was like 4.38% on July 21st and Banks charge like 2.5% above that rate to cover overhead and costs.

They say banks consistently charge like 2% to 3% above the 10 year treasury bond yield.

 

[Tom4value]

Technically, mortgage rates are tied to mortgage-backed securities. However, that data isn’t generally published or noted on the daily financial shows. Still, mortgage rates follow the 10 year Treasury about 80% percent of the time so it is the best benchmark for most people in the business.