Mortgage Rates For January 30, 2024: How Does the Bond Market Affect Mortgage Rates?

Written By

Tara Clapper
Tara Clapper
Tara Clapper is a personal finance freelance writer located in the Washington, DC area. Over the last two decades, she's regularly covered topics such as credit score improvement, first-time home-buying, and home-based self-employment for various mortgage companies, real estate agents and agencies.

Government bonds affect mortgage rates – but how does that work? If you’re following daily average mortgage rates, it’s critical to understand each factor that affects rates. One factor is the rates attached to government bonds. 

30-year mortgage interest rates -0.01%

The average daily mortgage interest rate for Tuesday, January 30, 2024 is 6.87% for a 30 year fixed rate. The rate fell 0.01% from yesterday and rose 0.20% from December 2023. This information is sourced daily from correspondent, retail, and wholesale lenders located in the United States.

Lenders in the freerateupdate.com network are currently offering rates as low as 5.9% (6.1% APR) on a 30-year fixed-rate mortgage. Receive a rate up to 0.97% lower than today’s average 30-year mortgage rate if you qualify.

15-year mortgage interest rates 0.00%

The average daily mortgage interest rate for Tuesday, January 30, 2024 is 6.29% for a 15 year fixed rate. The rate remained stable in comparison to yesterday and rose 0.29% from December 2023. This information is sourced daily from correspondent, retail, and wholesale lenders located in the United States.

Lenders in the freerateupdate.com network are currently offering rates as low as 4.9% (5.2% APR) on a 15-year fixed-rate mortgage. Receive a rate up to 1.39% lower than today’s average 15-year mortgage rate if you qualify.

What are government bonds in the United States?

When an individual, company, or business decides to purchase government bonds, they’re providing the government with money and receiving interest when they cash their bonds in. Basically, bonds are lending money to the government. When people refer to bonds, they’re usually talking about federal government bonds, but state and local governments can also issue them. Federal bonds are the ones that affect mortgage rates.

Because the federal government is seen as a trustworthy organization to lend to, bonds are seen as a safe investment. It’s a reliable method for earning interest. 

There are two types of bonds issued by the United States government: EE Bonds and I Bonds. 

 EE Bonds and I Bonds. When those bonds reach maturity, the investor receives interest plus their initial investment. Sometimes they’re sold on a secondary market, and they’re accessible investments as they start at $25. 

How do these Treasury Bonds affect interest rates?

Credit unions, banks, and other lenders monitor the 5-year bond yield. They use that information to affect their decisions on fixed-rate mortgages and general rates. They also add a “risk premium,” which translates to the padding between the bond rate and mortgage interest rate. The risk premium is generally 1-2%.

This is an inverse relationship. When bond prices fall, mortgage rates go up, and the other way around. Financial institutions pay careful attention to the rates the United States Treasury sets for bonds. Note that bond values only affect fixed-rate loan rates. 

If you’d like to stay ahead of what the banks might do when it comes to average daily mortgage interest rates, keep an eye on Treasury changes to bond rates.

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