30-Year Mortgage Rate Tops 3% for First Time Since July

As we follow up on our previous blog regarding the skyrocketing 30-year treasury yield, we are seeing its impacts on mortgage rates. Last week, the 30-year treasury yield hit its highest level in a year, before the coronavirus pandemic began. As this yield has risen, we have seen subsequent increase in the 30-year fixed-rate mortgage since mortgage rates tend to move in the same direction as the yield on the 10-year treasury. So, Americans who purchased new homes or refinanced their mortgages over the past few months may have done so at just the right moment.

The average rate on a 30-year fixed-rate mortgage rose to 3.02%, mortgage-finance giant Freddie Mac said Thursday. When rates hit 2.98% in July, it was their first time under the 3% mark in about 50 years of record-keeping, according to Freddie Mac. We will continue to monitor these rates and the impacts they have on other metrics. If you have any questions about refinancing or mortgages, please reach out to us and we will be happy to connect you with a mortgage professional. As always, give us a shout at info@shermanwealth.com or schedule a complimentary 30-minute consultation here.