Current US interest rates are modest by historic standards, Hammack says
TLT•Cleveland Fed President Beth Hammack said current US interest rates are modest by historical standards, comparing 10-year Treasury yields with levels in the 1990s. She said a return to 3% mortgage rates would likely mean something had gone wrong in the economy; current mortgage rates are above 7%.
1. Rates and history
Cleveland Fed President Beth Hammack said 10-year Treasury yields are now in line with levels in the 1990s and described current rates as modest. She said the low mortgage rates from the 2007–2009 financial crisis through the COVID-19 pandemic coincided with sluggish growth and aggressive central bank action.
2. Mortgage rates
Current mortgage rates are more than 7%. Hammack said a fall back to 3% would likely mean something had gone wrong in the economy.
