Rates follow Europe’s lead

In a show of neighborly support, rates increased after the European market opened and EU bond yields grew. The 30-year fixed rate mortgage is up 23 basis points at 5.35% while the 15-year is up 28 basis points at 4.65%.

current outlook:

As for U.S. bonds, they’ve also been on the rise. The yield on the 10-year Treasury note briefly touched 2.94%, an event which has not occurred since late 2018. Experts attribute this to investors pricing in for future inflation, disadvantageous Federal Reserve policies, and continued unrest in Ukraine. In real estate news, Q3 and 4 of 2021 saw a jump in investor purchases according to housing economist Tom Lawler. While total home purchases only fell 3.1% from the first half of 2021, non-investor purchases actually fell 14.4%. Consider too that Lawler was using CoreLogic data which defines an investor as an “entity (individual or corporate) who retained three or more properties simultaneously within the past 10 years,” thus leaving out smaller investors from their results. 

Rates follow Europe’s lead

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