Mortgage-Bond Yields Guiding Home Loans Soar to Five-Month High
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Yields on Fannie Mae and Freddie Mac mortgage securities that guide home-loan rates reached their highest levels in almost five months, suggesting borrowing costs may rise from record lows.
Fannie Mae’s current-coupon 30-year fixed-rate mortgage bonds jumped to 3.80 percent as of 5 p.m. in New York, mostly tracking a gain in 10-year Treasuries as those yields rose from 3.64 percent to the highest since June 25, according to data compiled by Bloomberg. Yields on mortgage securities, which typically push loan rates in the same direction by similar amounts, have risen from 3.27 percent on Nov. 4.