Today mortgage interest rates today: Mortgage interest rates today: Check current mortgage rates on May 25, Memorial Day, what to expect this week
The question now is: Will mortgage interest rates rise or slow down?
In recent days and weeks, U.S. Treasury investors have focused on the elusiveness of a deal and the long-term ramifications of the war, pushing yields well above 4.5 percent on the benchmark 10-year bond. Meanwhile, Federal Reserve officials seeking to reduce inflation are discussing the possibility of raising interest rates rather than lowering them as Trump insists. And some Republicans in Congress have become concerned about Trump’s calls for spending ahead of midterm elections that will determine whether they have a tenuous grip on the House and Senate.
Rising Treasury yields directly feed into borrowing costs in the economy, including mortgages, credit cards and business loans, and can cause financial stability problems. Bond investors said management should pay attention.
President Donald Trump’s resolve on Iran is being tested by a force largely beyond his control: the bond market. As yields rose sharply last week, a White House official said there was significant concern among staff about gasoline prices and where the bond market was headed, with fuel prices the biggest concern right now. Higher yields mean higher borrowing costs for businesses and consumers, while rising oil prices also raise inflation expectations. This mix could cause a headache for the administration as it prepares for midterm elections in November.
“The markets are showing him pain, and he needs to figure out how to fix it — and it’s not that easy,” said Greg Faranello, head of U.S. interest rate strategy at AmeriVet Securities in New York. “We are already at levels that will eventually be reflected in mortgage interest rates and the housing market.” Trump said on Saturday that Washington and Iran were making progress on a peace deal in the three-month-old war, but he stressed on Sunday that there was no rush for a deal, dampening hopes for a breakthrough any time soon.
