🇺🇸 The 10-year Treasury just broke 5% for the first time since October 2023, and the American mortgage followed it back over 7%.
This is the rate that prices the house, the refinancing, and the political headache. Basically, the cost of a 30-year loan climbed with them.
Why: hotter August inflation, expensive oil from Hormuz and the Red Sea, heavy Treasury supply, and markets now pricing a Fed hike this week (meeting ends Wednesday).
The Fed does not set mortgage rates directly; the 10-year does most of that work.
5% on the 10-year is a psychological line, not a law, but it is the highest long-rate regime the U.S. has seen in almost 3 years.
This is the rate that prices the house, the refinancing, and the political headache. Basically, the cost of a 30-year loan climbed with them.
Why: hotter August inflation, expensive oil from Hormuz and the Red Sea, heavy Treasury supply, and markets now pricing a Fed hike this week (meeting ends Wednesday).
The Fed does not set mortgage rates directly; the 10-year does most of that work.
5% on the 10-year is a psychological line, not a law, but it is the highest long-rate regime the U.S. has seen in almost 3 years.
