Treasury Bonds and Mortgage Rates

A few weeks ago I wrote about a blog post from the Federal Reserve. In their blog post, they had explained why the rate hike shouldn’t impact long-term mortgage rates. And they were right. In fact, we’ve seen exactly the opposite happen. We’ve had weeks and weeks of decreasing rates on long-term, fixed-rate mortgage rates. So, what’s going on here? Well, long-term interest rates don’t follow the Fed funds rate, but they do track to 10 year Treasury bonds. And investors are flooding the bond market.


by Aimee Whitaker

Tiempo Escrow, Inc.

2100 Main Street, Suite 330,

Huntington Beach, CA 92648

Phone. 714-843-0101