Japan Homebuyers Get Clue on Higher Mortgage Rate After BOJ
- Cheapest rate on government-related mortgage rose to 2014-high
- Coupon on JHF RMBS was 26 basis points higher than November
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Home hunters in Japan just got a good hint about how much more they may have to pay for a popular fixed-rate mortgage after the Bank of Japan surprised markets this week by doubling its yield cap on the 10-year government bond.
Japan Housing Finance Agency, a government-backed home-loan financier, priced on Thursday residential mortgage-backed securities at a coupon that was about a quarter percentage point higher at 1.02% than last month. That could lead to a corresponding jump in mortgage rates if the higher yields are passed on in full.