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Daily Mortgage Rates and 10 Year Treasury Rate – July 3rd

Posted on | July 2, 2009 | 1 Comment

After the unemployment numbers were released, almost everything was down yesterday.  The S&P 500 dropped almost 3%.  As many of you know, I have been expecting this for quite some time as jobs are just not being created in this economic environment.  With that being said, the 10 year treasury rate is getting VERY close to the strong support of the 50 day moving average.  I expect to see a strong bounce off the 50 dma in the next few weeks, so what for mortgage rates to go much higher when this happens.  The equation used for the correlation between mortgage rates and the 10 year treasury rate is

y = 2.7283(x)^2 + .5881(x) +.0308.

10 Year Treasury Rate – 3.50%
The correlation shows that the 30 year fixed rate should be approximately 5.47%.  Actual rates…

30 Year Fixed Rate Mortgage – 5.38%

Category: 10 year treasury rate, daily mortgage rates
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One Response to “Daily Mortgage Rates and 10 Year Treasury Rate – July 3rd”

  1. Mortgage Rates Higher Due to the 10 Year Treasury Rate? - Economic Conversation
    July 5th, 2009 @ 11:34 am

    [...] currently find the 10 year treasury rate at the bottom of an upward trend channel.  Not only is it at the bottom of the trend channel, it [...]

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