The Aramco Group is fully operational, although our corporate branch might be closed or operating with limited hours due to COVID-19. Personnel are ready and available via phone, e-mail, and other virtual means to provide assistance with any of your mortgage needs. To get more information you can submit an information request on our contact page and a mortgage adviser will reach out to you shortly.

Mortgage rates move sharply higher after bond sell-off

Mortgage rates move sharply higher after bond sell-off

Mortgage rates move sharply higher after bond sell-off
Mortgage rates shot up this week as demand for refinances remained strong despite volatility in the stock and bond markets. The increase in home loan borrowing costs is a major reversal from last week when rates hit an all-time low.

While the Federal Reserve announced a second emergency rate cut last week, bringing its benchmark interest rate to near zero, mortgage rates do not follow the Fed’s movements directly. Rather, long-term rates like mortgages track more closely with mortgage backed securities and the yield on 10-year Treasury bonds.

A congressional approval of a major spending bill to soften the impact of the pandemic saw bond yields swing higher, resulting in the increase in mortgage rates.

Today, conforming no-point 30-year fixed mortgage rates averaging 4.5 percent and 15-year rates are near 3.875 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.