Daily Mortgage Rates and 10 Year Treasury Rate – July 20th

Posted on | July 20, 2009 | No Comments

Please use Subprime Blogger to get your current mortgage rates forecast. There are also articles to assist you in getting the low mortgage rates you want!

The 10 year treasury rate yield shot up HUGE last week to the tune of 10%! This is going to force mortgage rates to react this week. It would not surprise me to see daily mortgage rates work their way all the way up to 5.5% before some consolidation. For those of you who were waiting for mortgage rates to drop below 5%, well, I think that is now out of the question for quite some time. The 10 year yield is now above the support level of the 50 day moving average and we are looking at the yield headed towards 4%.

If the yield does hit 4%, it will be likely that mortgage rates will be somewhere around 6%. As I have been saying for quite some time, this is very bad news for the overall housing market, but it might flush the bottom out as higher mortgage rates are going to bring even lower home prices.

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 – 3.65%
The correlation shows that the 30 year fixed rate should be approximately 5.52%. Actual rates…

30 Year Fixed Rate Mortgage – 5.59%

Please check out the daily Subprime Blogger rant; today I let Mr. Bernanke know how I feel:

Oh, so you are planning now for the “restoration of fiscal balance?” I call bullshit! The more statements that you make, the more I realize that you are full of shit Mr. Bernanke. Printing money in an attempt to spend our way out of this recession has not worked in the past so why do you think it will in the future?

Read the entire article here: Ben Bernanke, Please let the Markets Set Interest Rates

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Daily Mortgage Rates and 10 Year Treasury Rate – July 20th

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