The Record Low 10-Year Treasury Yield Could Be Good News For Borrowers
The yield on the benchmark 10-year Treasury note, a key barometer for mortgage rates and Student loans, fell below 0.9% on Thursday. Borrowing costs could drop across the board as a Result. It was the first time the 10-year Treasury yield ever broke below 0.9%.
The yield on the 10-year note is a barometer for mortgage rates and other types of loans.
Most Americans’ largest liability is their home mortgage. Currently, the average 30-year fixed-Rate is about 3.71%, near the lowest level in years, according to Bankrate.com.
“Whether you are house shopping or refinancing, the rates today are a big advantage,” Tendayi Kapfidze, the chief economist at LendingTree, an online loan marketplace, said Tuesday.
“For people refinancing, this will be a more compelling proposition,” added Mark Hamrick, Bankrate.com’s senior economic analyst. “You could be freeing up some money in your monthly budget and that money can be put to use.”