Bond yields edged higher in September, rebounding from the lows reached in August. The 10- year Treasury bond yield rose from 1.47% at the beginning of September to 1.68% at the end of the month. The rise in yields affected loan rates as they had just reached lows in August not seen in years.
Additional rate cuts in Europe by the European Central Bank (ECB) pressured bond yields lower in Europe and Asia. Bond markets are eagerly awaiting indications of any further rate reduction in the U.S. by the Fed, perhaps prompted by economic data.
Low mortgage rates continue to fuel home sales nationally, with the rate on a conventional 30- year fixed mortgage at 3.64% at the end of September, down from 4.51% at the beginning of the year.
Sources: FreddieMac, ECB, U.S. Treasury
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