30-Year Mortgage Rates Skyrocket To 8%, Highest In Over 2 Decades Amid Treasury Turmoil
Portfolio Pulse from Piero Cingari
The average 30-year mortgage rate has risen to 8%, the highest in over two decades, driven by the 30-year Treasury bond yield which reached a 17-year high of 5%. The Mortgage Banker Association reported a continuous upward trend for six weeks, reaching 7.70% by the week ending on Oct. 13. The iShares Treasury Bond ETF (NASDAQ:TLT) has contracted by over 50% since the highs of 2020 and by more than 18% year to date.
October 18, 2023 | 6:55 pm
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The iShares Treasury Bond ETF (NASDAQ:TLT) has contracted by over 50% since the highs of 2020 and by more than 18% year to date due to the increase in both inflation and interest rates.
The rise in inflation and interest rates has negatively impacted the value of the iShares Treasury Bond ETF (NASDAQ:TLT), causing it to contract significantly. This trend is likely to continue in the short term as inflation and interest rates continue to rise.
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IMPORTANCE 80
RELEVANCE 100