Here’s why the interest rate that affects mortgages and other loans is near 3 percent and headed higher

The benchmark 10-year Treasury yield is on the verge of breaking 3 percent and is likely to go higher from there, taking interest rates on mortgages and a whole range of business and consumer loans higher with it.

The reasons behind the move include expected Fed interest rate hikes, rising inflation and global growth. But the U.S. government also is going to take on more debt to pay for widening deficits. The new tax law is expected to add $1.9 trillion to the deficit over the next decade. As that debt pile grows, interest rates, which rise when bonds sell off, could continue to go higher.

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