banks, with the 10-year faling to 3.44% Thursday. Treasury yields have tumbled since the collapse of two mid-size U.S. Treasurys and what the Federal Reserve does with interest rates can also influence the cost of borrowing for a home. Investors’ expectations for future inflation, global demand for U.S. While the Fed’s rate hikes do impact borrowing rates across the board for businesses and families, rates on 30-year mortgages usually track the moves in the 10-year Treasury yield, which lenders use as a guide to pricing loans. Many economists expect at least three more increases before the end of the year, though some have dialed those expectations back due to the recently developing banking crisis. That pushed the central bank’s key rate to a range of 4.5% to 4.75%, its highest level in 15 years. The average long-term rate hit 7.08% in the fall - a two-decade high - as the Federal Reserve continued to raise its key lending rate in a bid to cool the economy and quash persistent, four-decade high inflation.Īt its first meeting of 2023 in February, the Fed raised its benchmark lending rate by another 25 basis points, its eighth increase in less than a year.