05/19/2026
Guiding you Home-and Beyond the Closing!
The bond market is talking. Are you listening??
The 30 year Treasury yield just hit 5.18% -the highest level since July 2007.
To put that in perspective: the last time rates were this high, I was a newlywed and blissfully unaware of what "basis points" would one day mean for my clients. Nearly 19 years later, here we are.-smile
So what's driving it? It appears to be inflation fears which are back in the conversation lately.
Investors have been dumping bonds on fears that inflation is reigniting -spiking oil prices tied to our country's war with Iran. There were numerous reports last week about inflation. Stock traders may be betting on the Fed's next move could be a rate hike and not a rate cut (according to CNBC).
Hey, Layni Watkins Real Estate friends, its not just the U.S.. Yields ae elevated in the U.K., Germany, & Japan. Japan's 30 year yield hit a record high this week (according to CNBC).
Now, what does this mean for my buyers, sellers, & investors in real estate? The 30 year fixed mortgage rate moves roughly in step with Treasury yields.
As of mid-May, the average 30 year mortgage rate touched 6.34%, & the Mortgage Bankers Association projects rates will stay in the 6.1%-6.3% range for the rest of 2026.
Realtor Layni is asking you again...is the bond market talking to us?
If you have questions about how the rate environment affects your buying or selling power, let's connect. I will do the best I can to help you understand the bond market but remember I am not an economist, a CIO, an interest rate strategist, a portfolio manager, or a bond trader but I can tell you how it affects the real estate market.-smile
Layni Watkins Real Estate is here to help you navigate the real estate market. I love working with people and I can make your next move, your best move.