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30 Year Mortgage Rates and 10 Year Treasury Yield

Mortgage loans have fallen to historic lows and will continue to do so because the 10 year treasury yield is approaching an all time low near 1.60% and this is a stark contrast to just 8 months ago when yields were above 3% and investors anticipated 2 to 3 rate hikes in 2019. A falling 10 year treasury is good for home buyers because mortgage underwriters use the 10 year a benchmark and add a slight premium to make the consumer mortgage profitable for the bank.