How To Get A Low Auto Loan, Mortgage Rate When Bond Yields Are High

The cost of borrowing is rising — and that could make financing a car or home more expensive.

Treasury bond yields moved higher last week amid renewed concerns about inflation, government debt and the fiscal outlook. The U.S. 10-Year Treasury yield — a key benchmark for longer-term borrowing costs — climbed to around 4.7%. Meanwhile, the 30-Year Treasury yield reached its highest level since 2007.

Mortgage rates have also edged higher. The average 30-year fixed mortgage rate was around 6.7% on Friday, according to Mortgage News Daily. Mortgage rates tend to track the 10-Year Treasury yield closely over time.

Meanwhile, the U.S. 5-Year Treasury yield has remained elevated in recent months, contributing to a higher-rate environment for auto loans as well. Auto loan rates are influenced by several factors, including lender funding costs, credit risk and the borrower’s credit profile.

If you’re planning to buy a house or a car, there’s unfortunately not much you can do to control where market rates go. However, shopping around can help. Some lenders consistently offer lower-than-average rates, potentially making your financing more affordable. Below, CNBC Select outlines our top picks for affordable home and auto loan providers.

If you’re looking for an affordable home loan, CNBC Select recommends starting with a credit union or an online lender.

Since credit unions are member-owned, not-for-profit organizations, they tend to offer lower rates to their members. Online lenders are also a option because these companies don’t have to pay overhead costs, like retail location leases, so they may be able to offer lower-than-average rates.

Online lender Better is a great choice, especially if you’re looking to close quickly. It has an average close time of 19 days, about half the marketplace average, and consistently offers lower-than-average rates. As of August 21, a 30-year fixed rate on a conventional mortgage was as low as 6.13%, per Better’s website. That’s much lower than the average rate of 6.77% for that date, per Mortgage News Daily.

If you want a more traditional banking experience, FourLeaf Credit Union is another great option. As of August 21, its rates on a 30-year fixed-rate conventional mortgage were as low as 6.63%, according to its website.

Another way to save on your mortgage rate is to investigate government-backed loans like FHA and VA loans to see if they’re right for you. These options offer lower rates than a conventional loan because the government insures them.

On August 21, the 30-year fixed rate on a FHA loan was 6.33% and the 30-year fixed rate on a VA loan was 6.35%, per Mortgage News Daily.

If you’re looking for a FHA loan, consider Rocket Mortgage. It’s the largest FHA lender by volume in the country and is known for its customer service excellence, ranking at the top of J.D. Power customer satisfaction surveys each year. Its FHA loan is available to all Americans with a 3.5% down payment and a credit score of 580 or higher. As of August 21, its 30-year fixed-rate FHA loan is 6.13%.

If you’re a veteran or active service member who qualifies for a VA loan, we suggest looking at Navy Federal Credit Union, which boasts some of the lowest VA loan rates on the market. As of August 21, NFCU VA loan rates are 5.75%, per their website.

myAutoLoan’s network of lenders currently offers interest rates as low as 4.99% for a new car purchase and as low as 5.24% for a used car purchase. According to May 2026 data from the Fed, the average interest rate on a 60-month new car loan is 7.14% — still higher than what myAutoLoan currently offers. myAutoLoan is a marketplace that allows customers to submit one application and receive matches from up to four lenders. They can choose from new and used car loans, auto refinance, private party loans and lease buyout loans.

As with mortgages, credit unions for auto loans can pass down extra profits to members, sometimes in the form of lower interest rates.

PenFed Credit Union Auto Loans offers rates starting at 3.39% if you use the PenFed New Car Buying Service for purchase and financing. The service offers perks like cash back from select manufacturers and special discounts on specific vehicles. You need to be a member to accept your loan and take advantage of the New Car Buying Service, but membership is fairly easy to establish: Open an eligible PenFed bank account and deposit $5 into it.

Lenders like Tenet Auto Loans specialize in loans for new and used electric vehicles. This lender offers a loan calculator that shows you potential interest rates and monthly payment amounts. An example on Tenet’s loan calculator page shows the breakdown for purchasing a used EV from a popular brand for $26,800; in this case, if you have a very good credit score (between 760 to 799), put down 10% and choose a 60-month term, your interest rate could be 5.19% (with a 0.25% autopay discount).

Experiment with the calculator and see what you can afford, then get pre-qualified for a loan offer. Always remember to shop around from different lenders so you can compare rates and make sure you’re getting the best deal with terms that are right for you.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed financial decisions. Every debt article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.