Interest Rate Trends
Explore historical 10-Year Real Interest Rate observations from the Federal Reserve Bank of Cleveland, retrieved from FRED. Compare additional rates when live data is configured.
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Interest Rate Data
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About This Data
Live observations are sourced from Federal Reserve Economic Data (FRED). Check the data status above the chart for observation dates, missing series, or clearly labeled demo data.
10-Year Real Interest Rate (REAINTRATREARAT10Y)
A model estimate from the Federal Reserve Bank of Cleveland that accounts for expected inflation. Values are monthly percentages, not seasonally adjusted, and can be negative. This is distinct from nominal Treasury yields and quoted mortgage rates.
Source: Federal Reserve Bank of Cleveland, retrieved from FREDFederal Funds Rate (FEDFUNDS)
The interest rate at which banks lend reserve balances to other banks overnight. This rate is set by the Federal Open Market Committee (FOMC) and serves as a benchmark for other interest rates.
10-Year Treasury Rate (GS10)
The yield on U.S. Treasury securities with a constant maturity of 10 years. This rate is widely used as a benchmark for mortgage rates and other long-term lending rates.
How Interest Rates Affect Real Estate
Mortgage Rates
Mortgage rates typically track the 10-Year Treasury Rate. When treasury yields rise, mortgage rates generally increase as well. Higher mortgage rates increase the cost of borrowing for home buyers, potentially reducing purchasing power and affecting home sales.
Property Values
Interest rates can influence property values. Lower rates often lead to increased demand for housing as mortgage payments become more affordable, potentially driving property values higher. Conversely, higher rates may slow price growth or even cause values to decrease.
Investment Decisions
Real estate investors closely monitor interest rates as they impact financing costs and potential returns. Changes in the Federal Funds Rate, set by the Federal Reserve, can signal broader economic shifts that affect investment strategies.
Refinancing Opportunities
Periods of falling interest rates create opportunities for homeowners to refinance existing mortgages, potentially lowering monthly payments and saving thousands over the life of a loan. Tracking rate trends helps identify these refinancing windows.