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Daily Mortgage Rates and 10 Year Treasury Rate – July 15th

Posted on | July 15, 2009 | 4 Comments

We saw a huge jump in the 10 year treasury rate yesterday to the tune of almost 3%.  Early this morning we are seeing another drastic jump right back to the 50 day moving average.  The once strong support is likely to serve as a resistance level now, but we will see.  It is likely that we are going to see a slight move higher in the 30 year fixed rate mortgage this week because of the action of the 10 year treasury rate yield.  We will find out that information tomorrow when Freddie Mac releases their weekly average mortgage rates survey.  Overall the 10 year treasury yield has plummeted lately but it has recently seen a slight bounce so it will be interesting to see just how mortgage rates reacted.

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 – 3.45%
The correlation shows that the 30 year fixed rate should be approximately 5.43%.  Actual rates…

30 Year Fixed Rate Mortgage – 5.22%

We are at a very interesting crossroads for the 10 year.  In my opinion, the Federal Reserve Banke will sink billions more into debt which will push them lower.  If the Fed does not do this, the 10 year yield might actually get right back into its uptrend.  Only time will tell…

Category: 10 year treasury rate, daily mortgage rates

Comments

4 Responses to “Daily Mortgage Rates and 10 Year Treasury Rate – July 15th”

  1. Subprime Blogger / Refinance Rates Following the 10 Year Treasury Rate Yield
    July 15th, 2009 @ 3:21 pm

    [...] rates look to be following the 10 year treasury rate yield which has me completely baffled at this point.  Whatever Ben Bernanke and the Federal Reserve says [...]

  2. Subprime Blogger / Mortgage Rate Predictions – Interest Rates Lower But Not For Long
    July 15th, 2009 @ 9:42 pm

    [...] rate remains intact with a strong 4.5% gain on the yield of the 10 year on July 15th.  The 10 year treasury rate is now well above the 50 day moving average and could work its way back to 4% on the [...]

  3. The Financial Suite » Refinance Rates Following the 10 Year Treasury Rate Yield
    July 16th, 2009 @ 5:12 pm

    [...] rates look to be following the 10 year treasury rate yield which has me completely baffled at this point.  Whatever Ben Bernanke and the Federal Reserve says [...]

  4. The Financial Suite » Mortgage Rate Predictions – Interest Rates Lower But Not For Long
    July 16th, 2009 @ 5:12 pm

    [...] rate remains intact with a strong 4.5% gain on the yield of the 10 year on July 15th.  The 10 year treasury rate is now well above the 50 day moving average and could work its way back to 4% on the [...]

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