Hawkins spoke with USA Today for an advice article on treasury yields and mortgage rates.
福利亚洲国产精品 Assistant Teaching Professor of Economics Devon Hawkins provided insight for a recent examining why rising Treasury yields are keeping mortgage rates elevated and contributing to affordability challenges for prospective homebuyers.
The article explains that Treasury yields have reached their highest levels in nearly two decades amid persistent inflation, increased government borrowing and greater competition for investor dollars. Because mortgage lenders use the 10-year Treasury yield as a benchmark when pricing home loans, increases in Treasury yields generally lead to higher mortgage rates.
鈥淲hen Treasury yields go up, mortgage rates usually go up with them,鈥 said Hawkins. 鈥淚t鈥檚 not a perfect one-for-one relationship, but they tend to move in the same direction.鈥
That relationship is one reason 30-year mortgage rates remain around 6.6% to 6.7%, adding to borrowing costs for prospective buyers. The article advises homebuyers to focus on what they can comfortably afford at current rates rather than attempting to predict when borrowing costs might decline.