Daily Mortgage Rates and 10 Year Treasury Rate – August 6th
Posted on | August 6, 2009 | 1 Comment
Daily mortgage rates are VERY likely to increase soon as the 10 year treasury rate yield shot all the way up to 3.76% yesterday. This is the highest level we have seen since the sell off from 4% back in the middle of June. This does not look good for mortgage rates. If the 10 year yield continues to make its push towards 4% again, we are going to see mortgage rates make a move towards 6%. If you were thinking about refinancing or getting your first mortgage, I would go ahead and contact the lenders to get the process in gear because if you wait a few weeks, you could definitely see mortgage rates near or above 6%.
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 – 3.76%
The correlation shows that the 30 year fixed rate should be approximately 5.67%. Actual rates…
30 Year Fixed Rate Mortgage – 5.34%
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One Response to “Daily Mortgage Rates and 10 Year Treasury Rate – August 6th”
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August 8th, 2009 @ 6:25 pm
With the better than expected news recieved with the jobless claims and push toward 4% on the 10 year occuring, rates will more than likely go up. My question is, do you think that the ralley in the 10 year is due to scale back or continue upward. Jobless claims were lower but are still showing that more and more are losing their job. Do you think that the market simply “jumped” when it heard the “good” news on the job report, or do you think that this coming week will provide a digestion of the true numbers and show a dip in rates?
Have a great Day