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Daily Mortgage Rates and 10 Year Treasury Rate

Posted on | July 10, 2009 | No Comments

Just as expected, the 10 year treasury rate yield bounced back in a big way yesterday.  I look for continued break and retrace action from the 10 year.  It could work its way closer to the 50 day moving average, but that line will now serve as resistance instead of support.  I think will all know that Ben Bernanke is going to pull out all stops to cap interest rates so we may just see the 10 year tank straight to the next support level, the 200 day moving average.  With that in mind, look for average mortgage rates to head lower throughout the summer unless free market capitalism actually starts to work.

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 – 3.41%
The correlation shows that the 30 year fixed rate should be 5.40%, actual rates….

30 Year Fixed Rate Mortgage – 5.19%

Category: 10 year treasury rate, daily mortgage rates
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