The average long-term U.S. mortgage rate edged higher this week, reflecting a recent uptick in the 10-year Treasury yield.
The yield moved above 4% this week as bond traders reacted to the government’s January’s jobs report. The surprisingly strong report stoked worries that it could persuade the Federal Reserve to wait longer before it begins cutting interest rates.
Hopes for such cuts amid signs that inflation has declined from its peak two summers ago have been a major reason the 10-year Treasury yield has mostly pulled back since October, when it climbed to its highest level since 2007.
In an interview broadcast Sunday night, Fed Chair Jerome Powell said that the central bank remains on track to cut its benchmark interest rate three times this year, a move that economists expect could begin as early as May.
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Investors’ expectations for future inflation, global demand for U.S. Treasurys and what the Fed does with interest rates can influence rates on home loans.
Find out how mortgage, auto, and interest rates have been trending here.