How Does 30-Year Treasury Affect Mortgage Rates: Explained

Mortgage Interest Rates Climbing? How The Ten Year Treasury Effects Real Estate

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What Is The 30 Year Treasury Rate For Mortgages?

The 30-year Treasury rate for mortgages, represented by the I:30YTCMR index, currently stands at 4.29%. This reflects a slight increase from the previous market day’s rate of 4.20%, but notably higher than the 3.37% recorded a year ago. It’s worth noting that the current rate is below the long-term average of 4.75%. This metric is a key indicator for the housing market and is closely monitored by investors and analysts to gauge trends and make informed decisions related to mortgages and real estate investments.

What Is The Difference Between 10 Year Treasury And 30 Year Mortgage Rate Spread?

The 10-year Treasury bond and the 30-year mortgage rate spread refer to the variance between the interest rates on these two financial instruments. Typically, this spread has been around 1.75 percentage points, and at its lowest, it dipped to 1.3 points in 2021. However, as of July 17, 2023, the mortgage spread has widened significantly, surpassing 3 percentage points. This historically wide margin is noteworthy, considering that the 10-year Treasury bond is a pivotal benchmark for determining mortgage pricing.