09/14/2026
Today the 10 Year Treasury hit 5% causing interest rates to go higher on residential and commercial financing. I haven’t seen this in a very long time (it touched 5% back in October of 2023 but even further back in 2007).
https://www.cnbc.com/quotes/US10Y
Just to give you a refresher… The 10 year Treasury is the most closely watched signals in the economy and reflects the following:
• Government borrowing costs — it's the interest rate the U.S. pays to borrow money for 10 years, so it shows how expensive federal debt is to service.
• Inflation expectations — yields rise when investors expect higher inflation ahead, since they demand more return to offset the loss of purchasing power.
• Growth expectations — rising yields can also signal investors expect stronger economic growth (and possibly future Fed rate hikes); falling yields often signal expected weakness or recession fears.
• Mortgage and Loan Rates — 30-year mortgage rates track the 10-year yield closely, so it directly affects how expensive it is to buy a home or borrow for a car or business.
• Stock valuations — higher yields make bonds more attractive relative to stocks and raise the "discount rate" used to value future company earnings, which can pressure stock prices, especially growth stocks.
• Global risk sentiment — as a benchmark "risk-free" rate, it influences borrowing costs and asset prices worldwide, not just in the U.S.
Right now, the move toward 5% is being read as a sign of the market pricing in sustained inflation pressure and heavy government/corporate debt issuance, at a moment when the Fed is also right before a policy decision — which is why crossing that level has gotten so much attention.
I will keep you informed as always on rates and changes in the market that could affect you are your clients. Note…If you need anything, please let me know. Thanks.
Best Regards,
Rob McCarthy
Senior Mortgage Advisor
https://www.101loan.com
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