AS OF 2-4-2025, FNMA-Freddie mortgage rates are around 7% up from 6.75% on Dec 22; and miles above its 2-year low of 6.08% on Sept 16, 2024. What's interesting are the FHA-VA rates around 6.125 -- why so much lower?  

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Bond investors, particularly in 10-year Treasury's, determine mortgage rates through their "yield" percentages buying them. Higher yields reflect concerns over inflation, deficit spending, and national debt limits. 

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On Sept 16, the bond yield was at a 2-year low of 3.6% when it happened - Trump and Harris started out bidding each other promising greater federal spending.

 

Cautious investors reacted demanding greater percentage returns, yields, buying bonds.  By mid-November, yields were over 4.5% when yields dropped to 4.262% on 11-25-2024, bringing hope mortgage rates would drop too. . They did, but then yields started heading up again. it was good while it lasted. 

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As of 2-4-2025, the "yield" is at 4.61% bouncing up and down each day.  2025 really won't arrive until Jan 6th when Wall Street and the government get back to fulltime work.  

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Bonds prices go down as their yield goes up as a percentage.
 

• How Fed interest rates work 2-17-2025

• Understanding yield curves 12-30-2024

• 10 year Treasury notes work 10-30-2024

• Treasury yields how it works 10-30-2024

• Deficit spending hurts bonds 10-29-2024

• Secondary Mtg market works 10-24-2024

• 10 Yr Yield what it is and why 10-24-2024

• 10 Yr T-notes how they work 10-24-2024