Daily Mortgage Rates and 10 Year Treasury Rate – July 24th
Posted on | July 24, 2009 | No Comments
Get your 10 year treasury rate yield analysis each weekday morning at Subprime Blogger.
We saw a HUGE move in the 10 year treasury rate yield yesterday. A daily move higher of 4.5% and the yield pushed well above the 50 day moving average. When looking at the equation used for the correlation between the 10 year yield and the 30 year fixed rate mortgage, overall rates should be around 5.63% yet they were still under 5.25% yesterday. I have a very good feeling that we are going to have a day similar to May 28th very soon, a day in which mortgage rates moved almost a full percentage point in less than 24 hours. Unfortunately, if this does happen, it is going to be a move to the upside rather than the downside.
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 – 3.71%
The correlation shows that the 30 year fixed rate should be approximately 5.63%. Actual rates…
30 Year Fixed Rate Mortgage – 5.23%
Tags: 10 year treasury rate > daily mortgage rates
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