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US Housing Market Faces Higher Mortgage Costs as Treasury Yields Rise

WASHINGTON: Higher U.S. Treasury yields are adding pressure to mortgage rates, keeping borrowing costs elevated for American homebuyers.

Washington DC representative image
Washington, D.C. representative image via Wikimedia Commons.

The 10-year Treasury yield has moved sharply higher as investors assess inflation risks, energy prices and the outlook for Federal Reserve policy.

Mortgage rates often move with longer-term Treasury yields, although the relationship is not one-to-one. Higher rates can affect affordability and the pace of home sales.

Source: Freddie Mac and U.S. Treasury.

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Imran Siddiqui

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