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Daily Mortgage Rates and 10 Year Treasury Rate – July 16th

Posted on | July 16, 2009 | 3 Comments

Another crazy day for the 10 year treasury rate yield yesterday.  A huge push higher now shows the 10 year yield well above the 50 day moving average.  Has the Fed run out of ammo?  The statement that the Fed sees joblessness above 10% shot the yield much higher yesterday.  I am not sure where we go from here, but it looks as if the uptrend that started in January remains intact.  Last week, I thought that trend was broken due to the penetration of the 50 dma, but I may have overestimated the lower trendline.  After a few strong days by the yield, it looks as if it is going higher.

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 – 3.596%
The correlation shows that the 30 year fixed rate should be approximately 5.55%.  Actual rates…

30 Year Fixed Rate Mortgage – 5.41%

Once again, if any chart technicians would like to correct me, please feel free to comment below.  As I see it, the uptrend remains strong and it looks like the yield is heading higher which will send mortgage rates higher.

Category: 10 year treasury rate, daily mortgage rates
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Comments

3 Responses to “Daily Mortgage Rates and 10 Year Treasury Rate – July 16th”

  1. Current Refinance Rates - Mortgage Rates Going Up? - Economic Conversation
    July 16th, 2009 @ 7:26 am

    [...] refinance rates could be moving higher over the next few weeks due to the increase in the 10 year treasury rate yield.  Over the last month the yield has come off its highs near 4% but we have seen a recent bounce.  [...]

  2. Church of Cowherd :: Interest Rate Trends – Current Mortgage Rates Up?
    July 16th, 2009 @ 7:49 am

    [...] fixed rate mortgage went from 4.8% to 5.59% in just a few short weeks.  After the high of 5.59%, mortgage rates fell all the way back down to where they were earlier this week, which was 5.05%.  It looks as if [...]

  3. Fixed Home Loan Rates Will Increase Soon - Economic Conversation
    July 16th, 2009 @ 11:32 am

    [...] home loan rates are sure to increase soon as the 10 year treasury rate yield continues to work its way higher.  The uptrend for the 10 year treasury rate yield began back in [...]

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