How the US national debt is keeping mortgage rates elevated

Prospective homebuyers in the U.S. are keeping a close eye on the Federal Reserve as they eagerly await interest rate cuts that could offer relief from painfully high borrowing costs. But there is another factor that could keep mortgage rates elevated in the coming months and years: the U.S. national debt. "As mortgage rates remain near 7%, a lot of attention is being paid to the timing of Federal Reserve interest rate cuts," said Lisa Sturtevant, Bright MLS chief economist.

HOW MUCH OF YOUR TAX MONEY GOES TOWARD SERVICING THE US NATIONAL DEBT? Foreigners currently own about 30% of all outstanding Treasury securities, according to The Wall Street Journal, which cited data from the Securities Industry and Financial Markets Association. If foreigners were to sell their bonds, the U.S. government would likely struggle to finance itself and pay down the mounting interest costs on the debt.

Source: Loan Digest (loandigest.net)

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Federal Reserve wants to cut rates, appears trapped by inflationAs the Fed keeps hopes alive for at least one rate cut this year, metals investors are weighing the inflation outlook.
Source: FXStreetNews - 🏆 14. / 72 Read more »

Federal Reserve stands pat on interest ratesThe Federal Reserve kept its benchmark rate in a range of 5.25% to 5.5%, the same level where it's been parked since July 2023.
Source: CBSNews - 🏆 87. / 68 Read more »

The Federal Reserve holds interest rates steady — here's what that means for your moneyThe Federal Reserve will keep rates where they are, for now — here’s what that means for your credit card, mortgage rate, auto loan and savings account.
Source: NBCNewYork - 🏆 270. / 63 Read more »

Federal Reserve interest rate decision for June 2024: Rates unchanged amid cooling inflationRob Wile is a breaking business news reporter for NBC News Digital.
Source: NBCNewsHealth - 🏆 707. / 51 Read more »

The Federal Reserve holds interest rates steady — here's what that means for your moneyThe Federal Reserve will keep rates where they are, for now — here’s what that means for your credit card, mortgage rate, auto loan and savings account.
Source: NBCLA - 🏆 319. / 59 Read more »

The Federal Reserve will cut rates this yearThe economy's current position and the attitudes of Federal Reserve Open Market Committee members indicate that further interest rate cuts are likely this year.
Source: dcexaminer - 🏆 6. / 94 Read more »