Loans Fly High 💸

Loans Fly High

Following the news of hotter-than-expected labor data, the biggest piece of Tuesday’s financial news came from debt markets. With expectations of higher American rates for longer climbing across the world, investors translated these presumptions to the bond market, sending the yields on the 10-year and 30-year US Treasury bond to their highest levels since 2007. Throughout the day, the yield on the 10-year Treasury reached 4.758% and the 30-year Treasury yield reached 4.874%. The 10-year Treasury yield is often tracked by marketgoers to measure investor confidence, and the consensus for another rate hike remains relatively high. CME Group’s FedWatch Tool has gathered probabilities to calculate a roughly 25% chance of a rate hike in November and a 45% chance in December.

With the 10-year Treasury yield widely also as a gauge for mortgage rates, loans for houses also reached historical levels not seen in decades. The average rate on the 30-year fixed mortgage rose to 7.72%, the highest recording since late 2000. This comes after the 30-year fixed rate mortgage fell to around 6% at the beginning of 2023, but now the chances of it rising to 8% are not out of the question. Since the start of the pandemic in March 2020, the 30-year fixed rate has climbed over 4 percentage points, replacing over a decade of rates comfortably under 5% for homebuyers. With rates far higher, both new and existing-home sales markets will suffer as homebuyers prolong their purchase and home sellers find a lack of demand to reach.

Want to learn how to invest? Download the Invstr app, where you can play Fantasy Finance and manage a virtual investment portfolio or open a brokerage account and invest for real. Take our interactive investing course on Invstr Academy and become a better investor today!

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:
More Posts
Load More
Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Facebook Twitter Youtube Instagram Snapchat Tiktok
learn
products
plan
Who we are
blog

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.