Monthly Market Update

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Monthly Market Update
Why the bond market influences mortgage rates
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Why the bond market influences mortgage rates

A quick primer on why bond yields impact mortgage rates

John Maseredjian's avatar
John Maseredjian
Dec 27, 2022
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Monthly Market Update
Monthly Market Update
Why the bond market influences mortgage rates
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Photo by Austin Distel on Unsplash

Mortgage rates and bond yields are closely related because mortgage-backed securities (MBS) are a type of bond. When the bond market is doing well and bond yields are rising, mortgage rates tend to rise as well. This is because investors are willing to pay more for mortgage-backed securities when they expect to receive …

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