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10-year Treasury yield gains are lifting some mortgage rates

Because many mortgage pricing models track the 10-year Treasury yield, rising bond yields can push borrowing costs higher for some loan types.

Reported · Written up by our desk · Mortgages

CNBC Real Estate explains that some consumer loans, including mortgages, are priced with interest rates that move alongside the yield on the 10-year Treasury bond.

The outlet says that when the 10-year yield rises, it can flow through to higher interest rates on those mortgage products that are pegged to that benchmark.

With the 10-year Treasury yield moving higher, bond investors have helped drive up certain interest rates borrowers may face.

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