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10 Year Treasury Rate Breaks Support; Mortgage Rates Lower

Posted on | July 8, 2009 | 2 Comments

The 10 year treasury rate broke through the 50 day moving average with a vengeance today.  The 10 year was down almost 5% in its last trade.  This means that it is likely headed all the way to the 200 day moving average which possibly means average mortgage rates under 5% soon.  Lets see how the rest of the week goes, but it looks like lower mortgage rates are coming!

I haven’t been at my computer much today, but what happened at 1:00 pm to send the 10 year so much lower?  Anyone who knows, please inform us by commenting below.  I will also try to do some research myself and update you later tonight.  UPDATE:  Here is the explanation.

Over the long term, I see higher interest rates as explained in my shorting treasuries article, but for now, it looks like short term mortgage rates are sinking to new lows.

Comments

2 Responses to “10 Year Treasury Rate Breaks Support; Mortgage Rates Lower”

  1. mark
    July 8th, 2009 @ 12:53 pm

    Uh…of course mortgage rates are going to go up “long term” – they’re at historic lows.

    Looks like you were a bit off on your previous predictions, my friend.

  2. admin
    July 8th, 2009 @ 12:56 pm

    You are correct, I was quite wrong in my predictions! Making short term predictions are very hard as there are so many factors. Making long term predictions is much more to my liking!

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