Negative carry
Negative carry
Negative carry occurs when the cost to finance an investment purchase exceeds the yield produced by the investment. For example, if an investor borrows money at 8 percent interest, and uses those funds to purchase a bond that pays 5 percent interest, the investor would be losing 3 percent interest on the investment.
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National Rates
| Loan Type | Today |
|---|---|
| 30 yr fixed | 4.83 |
| 15 yr fixed | 4.39 |
| 5/1 ARM | 3.69 |
Rates may contain points
