G fund rate? Whats up?

[James48843]

G fund rate? What’s up?

I see the 30 year fixed mortgage is now at 8% as of today.

What’s the G fund rate these days? Before, when mortgages were at 8%, the G fund often was at 6% or more. I’m not seeing that since they ((Congress) mandated the TSP invest in shorter term government securities.

What is the G fund rate of return today? Anybody know?


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[James48843]

G fund rate? What’s up?

The 30-year fixed mortgage rate just hit 8% for the first time since 2000 as Treasury yields soar

Source: CNBC
REAL ESTATE

The 30-year fixed mortgage rate just hit 8% for the first time since 2000 as Treasury yields soar

PUBLISHED WED, OCT 18 2023 * 1:02 PM EDT

Diana Olick
@IN/DIANAOLICK https://linkedin.com/in/dianaolick
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@DIANAOLICK https://twitter.com/DianaOlick

KEY POINTS
• The average rate on the popular 30-year fixed mortgage rate hit 8% Wednesday morning.
• Yields on U.S. Treasurys are soaring.
• Higher mortgage rates have caused applications to plummet.

The average rate on the popular 30-year fixed mortgage rate hit 8% Wednesday morning, according to Mortgage News Daily. That is the highest level since mid-2000. ... The milestone came as bond yields soar to levels not seen since 2007. Mortgage rates follow loosely the yield on the 10-year U.S. Treasury

Rates rose sharply this week and last week, as investors digest more reads on the economy. On Wednesday, it was housing starts, which rose in September, though not as much as expected, according to the U.S. Census Bureau. ... Building permits, an indicator of future construction, fell, but by a less than the expected amount. Last week, retail sales came in far higher than expected, creating more uncertainty over the Federal Reserve’s long-term plan.

These higher rates have caused mortgage demand to plummet, as applications fell nearly 7% last week from the previous week, according to the Mortgage Bankers Association.

“Here’s another milestone that seemed extreme several short months ago,” said Matthew Graham, chief operating officer of Mortgage News Daily. “The fact is that many borrowers have already seen rates over 8%. That said, many borrowers are still seeing rates in the 7s due to buydowns and discount points.”

{snip}

Read more: https://www.cnbc.com/2023/10/18/30-...t-8percent-for-the-first-time-since-2000.html


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[tsptalk]

Re: G fund rate? What’s up?

The TSP loan rate is 4.25%, which is the prior month's G-fund rate, but just going on yesterday's interest from the G-Fund, I would say it is currently paying closer to 4.72%.

 

[Boghie]

Re: G fund rate? What’s up?

The G-Fund rate will trail Treasuries and has no direct correlation with home loan rates. Apparently, it is a computed, weighted average of some Treasuries. Many Treasuries still pre-date inflation and FED hikes.

The reason why it was high back in the day is because it trailed Treasuries as the rates on new Treasuries fell. They seem undervalued now because they are not increasing as fast as the newest Treasuries because they still use older Treasuries in the computation.

 

[sean101]

Re: G fund rate? What’s up?

I see the 30 year fixed mortgage is now at 8% as of today.

What’s the G fund rate these days? Before, when mortgages were at 8%, the G fund often was at 6% or more. I’m not seeing that since they ((Congress) mandated the TSP invest in shorter term government securities.

What is the G fund rate of return today? Anybody know?


Sent from my iPhone using TSP Talk Forums

Looks like the rate for November will be 5.0%.

 

[Jackbnimble]

Re: G fund rate? What’s up?

Yep 5%, I believe this is the site where it's found. It's what I use.

Interest Rates on Social Security Investments (ssa.gov)