Daily Mortgage Rates and 10 Year Treasury Rate – July 13th
Posted on | July 13, 2009 | No Comments
As many of you know the Federal Reserve Bank announced that it was going to continue to buy United States debt for the second half of 2009. During the first half of the year, the Fed injected $280 billion into US debt and it is likely to increase over the remainder of this year. This is horrible news for the future value of the dollar but great news for anyone who wants to refinance or buy a new home.
In more words or less, the Federal Reserve Bank is going to print as much money as it can to keep interest rates low. Obviously this makes no sense for the long term value of the dollar, but for now, take advantage of this opportunity. Once other nations stop investing in this country, inflation is going to be crazy and we are going to see interest rates skyrocket. For now, that is something we do not have to worry about as we are still getting financial aid from foreign investors.
With that being said, last week the 10 year treasury rate yield was down drastically. It cut right through the 50 day moving average and continued even lower. I would not be surprised to see a dead cat bounce this week, but ultimately we are headed lower which will bring mortgage rates down with it as well.
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 – 3.295%
The correlation shows that the 30 year fixed rate should be approximately 5.31%. Actual rates…
30 Year Fixed Rate Mortgage – 5.15%
Tags: 10 year treasury rate > daily mortgage rates > low interest rates > Low Mortgage Rates
Comments
Leave a Reply