{"id":46382,"date":"2026-08-18T17:00:15","date_gmt":"2026-08-18T17:00:15","guid":{"rendered":"https:\/\/financialrush.com\/?p=46382"},"modified":"2026-08-18T17:00:15","modified_gmt":"2026-08-18T17:00:15","slug":"mortgage-rates-rise-as-treasury-bond-yields-climb","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=46382","title":{"rendered":"Mortgage rates rise as Treasury bond yields climb"},"content":{"rendered":"<p> \n<\/p>\n<div id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"\/><\/p>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108350949\">\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-108350949\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000422092\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><span class=\"InlineVideo-videoButton\"\/><span\/><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>Against a backdrop of persisting <a href=\"https:\/\/www.cnbc.com\/id\/10000793\">inflationary pressures<\/a>, yields on longer-term bonds have been climbing, which experts say is likely to keep borrowing costs elevated \u2014 particularly for long-term fixed-rate loans such as mortgages.<\/p>\n<p>The yield on the U.S. 30-year Treasury bond <a href=\"https:\/\/www.cnbc.com\/2026\/08\/18\/treasury-yields-.html\">hit 5.323% on Tuesday<\/a>, a 19-year high, before edging down to just below 5.3%. The <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-3\"><a href=\"https:\/\/www.cnbc.com\/quotes\/US10Y\/\">10-year Treasury<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> yield \u2014 a key benchmark for fixed mortgage rates and other longer-term loans \u2014 is above 4.7%. That compares to below 4% before the start of the Iran War at the end of February.<\/p>\n<\/div>\n<div>\n<div class=\"Collapsible-proliveCollapsableContainer\" role=\"button\" tabindex=\"0\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"256\" height=\"256\" viewbox=\"0 0 256 256\" aria-labelledby=\"title desc\" role=\"img\" focusable=\"false\" preserveaspectratio=\"xMinYMin\" class=\"Collapsible-stockChartIcon\"><title>Stock Chart Icon<\/title><desc>Stock chart icon<\/desc><g transform=\"translate(1.4065934065934016 1.4065934065934016) scale(2.81 2.81)\"><path d=\"M 87.994 0 H 69.342 c -1.787 0 -2.682 2.16 -1.418 3.424 l 5.795 5.795 l -33.82 33.82 L 28.056 31.196 l -3.174 -3.174 c -1.074 -1.074 -2.815 -1.074 -3.889 0 L 0.805 48.209 c -1.074 1.074 -1.074 2.815 0 3.889 l 3.174 3.174 c 1.074 1.074 2.815 1.074 3.889 0 l 15.069 -15.069 l 14.994 14.994 c 1.074 1.074 2.815 1.074 3.889 0 l 1.614 -1.614 c 0.083 -0.066 0.17 -0.125 0.247 -0.202 l 37.1 -37.1 l 5.795 5.795 C 87.84 23.34 90 22.445 90 20.658 V 2.006 C 90 0.898 89.102 0 87.994 0 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\"\/><path d=\"M 65.626 37.8 v 49.45 c 0 1.519 1.231 2.75 2.75 2.75 h 8.782 c 1.519 0 2.75 -1.231 2.75 -2.75 V 23.518 L 65.626 37.8 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\"\/><path d=\"M 47.115 56.312 V 87.25 c 0 1.519 1.231 2.75 2.75 2.75 h 8.782 c 1.519 0 2.75 -1.231 2.75 -2.75 V 42.03 L 47.115 56.312 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\"\/><path d=\"M 39.876 60.503 c -1.937 0 -3.757 -0.754 -5.127 -2.124 l -6.146 -6.145 V 87.25 c 0 1.519 1.231 2.75 2.75 2.75 h 8.782 c 1.519 0 2.75 -1.231 2.75 -2.75 V 59.844 C 41.952 60.271 40.933 60.503 39.876 60.503 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\"\/><path d=\"M 22.937 46.567 L 11.051 58.453 c -0.298 0.298 -0.621 0.562 -0.959 0.8 V 87.25 c 0 1.519 1.231 2.75 2.75 2.75 h 8.782 c 1.519 0 2.75 -1.231 2.75 -2.75 V 48.004 L 22.937 46.567 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\"\/><\/g><\/svg><\/p>\n<div class=\"Collapsible-proLivePlayerCloseOrExpand\"><img decoding=\"async\" src=\"https:\/\/static-redesign.cnbcfm.com\/dist\/a54b41835a8b60db28c2.svg\" class=\"Collapsible-dismissButton\" alt=\"hide content\"\/><\/div>\n<\/div>\n<p><iframe title=\"U.S. Treasury yields\" src=\"https:\/\/www.cnbc.com\/appchart?symbol=US10Y&amp;range=ALL&amp;comp=US2Y%2CUS5Y%2CUS20Y%2CUS30Y&amp;type=line&amp;embedded=true&amp;$DEVICE$=undefined\" height=\"460\" scrolling=\"no\" loading=\"lazy\" style=\"border:0;width:100%\"><\/iframe><\/p>\n<p>U.S. Treasury yields<\/p>\n<\/div>\n<div class=\"group\">\n<p>&#8220;The higher bond yields on long-dated securities, like the 30-year Treasury, clearly indicate discomfort over persistently high inflation in the future,&#8221; said Lawrence Yun, chief economist for the National Association of Realtors.\u00a0<\/p>\n<p>The annual rate of inflation was <a href=\"https:\/\/www.cnbc.com\/2026\/08\/12\/inflation-breakdown-for-july-2026-cpi-in-one-chart.html\">3.4% in July<\/a> as measured by the consumer price index, far above the Federal Reserve&#8217;s target of 2%. Before the war, <a href=\"https:\/\/www.dol.gov\/newsroom\/economicdata\/cpi_02132026.pdf\" target=\"_blank\">in January<\/a>, the annual inflation rate was 2.4%.<\/p>\n<\/div>\n<h2 id=\"what-bond-yields-mean-for-mortgage-rates\" class=\"ArticleBody-subtitle\"><a id=\"headline0\"\/>What bond yields mean for mortgage rates<\/h2>\n<div class=\"group\">\n<p>Since 15- and 30-year\u00a0<a href=\"https:\/\/www.cnbc.com\/mortgages\/\">fixed-rate mortgages<\/a>\u00a0typically follow the lead of Treasury rates, higher yields have already been pushing up mortgage rates. The average rate for a 30-year, fixed-rate mortgage was\u00a06.75% as of Tuesday, after finishing last week at 6.69%, according to\u00a0<a href=\"https:\/\/www.mortgagenewsdaily.com\/mortgage-rates\" target=\"_blank\">Mortgage News Daily<\/a>.<\/p>\n<p>&#8220;The impact on mortgage rates is directly related to higher bond yields,&#8221; Yun said. &#8220;Independent of the Federal Reserve policy, higher inflation and higher overall long-term borrowing costs will mean higher mortgage rates.&#8221;<\/p>\n<p>He said consumers should not expect any meaningful decline in mortgage rates.<\/p>\n<\/div>\n<div class=\"group\">\n<div class=\"RelatedContent-relatedContent\" id=\"RegularArticle-RelatedContent-1\">\n<div class=\"RelatedContent-container\">\n<div class=\"RelatedContent-nonCollapsibleContent\">\n<h2 id=\"read-more-cnbc-personal-finance-coverage\" class=\"RelatedContent-header\">Read more CNBC personal finance coverage<\/h2>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>Last week&#8217;s &#8220;favorable economic data provided only temporary relief,&#8221; said Jeff DerGurahian, LoanDepot&#8217;s chief investment officer and head economist. Higher energy prices\u00a0<a href=\"https:\/\/www.cnbc.com\/2026\/07\/14\/inflation-cpi-june-2026-in-one-chart.html\">stemming from the Iran conflict<\/a>\u00a0remain &#8220;an important part of the inflation picture,&#8221; he said.<\/p>\n<p>&#8220;Longer-term bond investors may need more evidence that the post-pandemic inflation cycle is truly behind us and that the economy is returning to a slower-growth, slower-inflation environment before 10- and 30-year Treasury yields move meaningfully lower,&#8221; DerGurahian said.<\/p>\n<\/div>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108351031\">\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-108351031\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000422115\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><img decoding=\"async\" class=\"InlineVideo-videoThumbnail\" src=\"https:\/\/image.cnbcfm.com\/api\/v1\/image\/108351032-17870699711787069967-47843981167-1080pnbcnews.jpg?v=1787069970&amp;w=750&amp;h=422&amp;vtcrop=y\" alt=\"30-year fixed mortgage rate inches up to 6.75%\"\/><span class=\"InlineVideo-videoButton\"\/><span\/><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>In the meantime, there are ways to offset today&#8217;s higher rates, experts say.<\/p>\n<p>&#8220;Some may want to consider shorter-term mortgage rates, like seven-year [adjustable-rate mortgages], which lock in fixed mortgage payments for the first seven years of the loan before readjusting,&#8221; Yun said. &#8220;These shorter-duration loans are ideal for those who are more certain they will move to another home within that seven-year timeframe.&#8221;<\/p>\n<\/div>\n<h2 id=\"what-bond-yields-mean-for-other-consumer-loans\" class=\"ArticleBody-subtitle\"><a id=\"headline1\"\/>What bond yields mean for other consumer loans<\/h2>\n<div class=\"group\">\n<p><strong>Rates on<\/strong> car loans, credit cards and student debt are also directly or indirectly tied to bond yields, meaning those monthly payments could increase as well.<\/p>\n<p>&#8220;It typically is an immediate pass-through to some consumer rates,&#8221; said Brett House, an economics professor at Columbia Business School. &#8220;Variable and some fixed-rate borrowing will reset rates on a daily basis.&#8221;<\/p>\n<p>Renewed worries about the trajectory of Fed interest rate policy could weigh on variable <a href=\"https:\/\/www.cnbc.com\/credit-cards\/\">credit card rates<\/a>, which are closely pegged to the\u00a0<a href=\"https:\/\/www.federalreserve.gov\/faqs\/credit_12846.htm\" target=\"_blank\">prime rate<\/a> and influence inflation expectations.<\/p>\n<\/div>\n<div class=\"group\">\n<p><a href=\"https:\/\/www.cnbc.com\/auto-loans\/\">Auto loan rates<\/a>\u00a0are also susceptible to broader economic factors. <\/p>\n<p>&#8220;Auto loan rates don&#8217;t move in a vacuum, but sustained pressure on Treasury yields inevitably pushes up borrowing costs across the financing spectrum,&#8221; said Jessica Caldwell, head of insights at Edmunds. \u00a0 <\/p>\n<p>&#8220;With average new-vehicle APRs already stuck around 7% and used vehicles at 10.6%, consumers are already paying heightened\u00a0interest,&#8221; she said. &#8220;If higher bond yields keep interest rates elevated, auto lenders will have little choice but to maintain or even bump up APRs, further stretching consumer budgets.&#8221;<\/p>\n<p>Although\u00a0<a href=\"https:\/\/www.cnbc.com\/student-loans\/\">federal student loan rates<\/a>\u00a0are fixed for the life of the loan, rates\u00a0rose\u00a0for new borrowers in the year ahead based on the last\u00a0<a href=\"https:\/\/www.cnbc.com\/quotes\/US10Y\/\">10-year Treasury note<\/a>\u00a0auction in May.<\/p>\n<p>&#8220;Of course, higher borrowing costs are meant to fight inflation, but there&#8217;s a potential double whammy for consumers,&#8221; said Ted Rossman,\u00a0a principal consumer finance analyst at Money Management International, a nonprofit credit counseling agency. &#8220;When prices are high, and borrowing costs are high \u2014 as they are now \u2014 you feel like you&#8217;re getting squeezed from all sides.&#8221;<\/p>\n<\/div>\n<div class=\"ArticleBody-googlePreferredSourceContainer\" data-module=\"GooglePreferredSource\" data-id=\"RegularArticle-GooglePreferredSource-5\"><a href=\"https:\/\/www.google.com\/preferences\/source?q=https:\/\/www.cnbc.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.<\/a><\/div>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.cnbc.com\/2026\/08\/18\/mortgage-rates-treasury-bond-yields-consumer-loans.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Against a backdrop of persisting inflationary pressures, yields on longer-term bonds have been climbing, which experts say is&hellip;\n","protected":false},"author":3,"featured_media":46383,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-46382","post","type-post","status-publish","format-standard","has-post-thumbnail","category-investing","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/46382","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=46382"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/46382\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/46383"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=46382"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=46382"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=46382"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}