Mortgage Rates Just Hit a 1-Year High. Here’s What That Means for Lowe’s and Home Depot Investors.
Mortgage rates have surged due to a global bond sell-off.
Overview
Mortgage rates recently hit a one-year high, with the 30-year fixed-rate mortgage rate now at 6.71%.
The global sell-off in Treasury bonds is driving the increase because, as bond prices fall, bond yields rise. Mortgage rates are directly correlated to moves in the yield on the 10-year U.S. Treasury note.
Details
Bond yields have surged recently, as inflation remains persistently high, the Iran war continues on, and as investors grow more nervous about mounting U.S. debt, which recently topped $40 trillion.
Source
Originally published at www.fool.com.
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