Definition
The interest rates on home loans. In the US they tend to move with the 10-year Treasury yield, plus a spread.
The story
Many US mortgages are bundled into mortgage-backed securities sold to investors, who compare them with Treasuries, so the 10-year yield acts as a rough anchor and mortgage rates sit above it. Freddie Mac publishes a widely cited weekly average of the 30-year fixed rate on Thursdays.
Why markets watch it
Mortgage rates decide what millions of people can afford, which makes them one of the main ways interest-rate changes reach households.
See it in the story
Connects to
Treasury yieldFixed vs. adjustable rateExisting home salesBasis point
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms