Interest Rate Update – September
The “benchmark” 10-year treasury closed today at 0.68%, slightly up from 0.66% a month ago, yet significantly lower than the 1.77% from one year ago. Based on the comments from the Fed meeting earlier this week, it appears that interest rates will remain low for the next few years. According to a 9/16/2020 article in the Wall Street Journal, written by Nick Timiraos, “The Federal Reserve pledged to support the economic recovery by setting a higher bar to raise interest rates and by signaling it expected to hold rates near zero for at least three more years.”
The current market for typical 10-year fixed-rate loans ranges from 2.50-4.0%.
The below graphic represents the history of the 10-Year US Treasury (US10Y) from then beginning of 1/1/2018 through 9/17/2020.