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Will mortgage rates follow bond yields down?

Marketplace

Marketplace

News, Business

4.68.5K Ratings

🗓️ 18 June 2024

⏱️ 29 minutes

🧾️ Download transcript

Summary

With bond yields dropping, lower mortgage interest rates may be on the horizon. That’s great for people who’ve put off buying a home because they felt priced out. But will rates fall enough to make homeowners with older, cheaper mortgages consider selling? Also in this episode: Buy now, pay later attracts vulnerable consumers, electric vehicle sales growth slows and product designers chase down copycat products.

Transcript

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In which we do a little bond market cause and effect.

1:20.0

From American public media,

1:22.0

this is Marketplace.

1:25.0

In Los Angeles, I'm Kai Rizdahl. It is Tuesday. Today this one is the

1:38.3

18th of June. Good as always to have you along everybody. With the full understanding that this makes two days in a

1:45.2

row that we're starting with the bond market our jumping off point on this Tuesday is

1:50.7

the 10-year Treasury note the yield on which continued its long slow march lower today 4.21%

1:58.1

if you're looking for the actual number, which as Mitchell Hartman told us yesterday is a reflection of what bond traders

2:04.4

think the Federal Reserve is going to do, namely lower its main interest rate

2:09.6

sooner rather than later. An obligatory disclaimer here that Fed officials have pretty

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