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Daily Mortgage Rates and 10 Year Treasury Rate – July 8

Posted on | July 8, 2009 | No Comments

The 10 year treasury rate moved MUCH lower yesterday after the auctions of the Treasury bonds by the government.  The 10 year currently sits right on its support level of the 50 day moving average.  Any significant move with volume below this point and we are likely to see a breakdown all the way to the 200 day moving average of around 3.1%.  It is not going to surprise me if we do not see a close below the 50 dma, but it is going to take some volume and a decided move before I think it has broken support.

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 – 3.46%
The correlation shows that the 30 year fixed rate should be 5.44%, actual rates….

30 Year Fixed Rate Mortgage – 5.28%

Right now it looks as if average mortgage rates have a reason to be heading lower.  Look for the Freddie Mac weekly survey to show lower mortgage rates until we see a bounce in the 10 year treasury rate.

Category: 10 year treasury rate, daily mortgage rates
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