Daily Mortgage Rates and 10 Year Treasury Rate – August 10th
Posted on | August 10, 2009 | No Comments
Daily mortgage rates are around 5.45% yet the relationship to the 10 year treasury rate yield shows that they should be much closer to 5.75%. This is very bad news for anyone who has been thinking about refinancing or getting their first mortgage. For quite some time I have been saying that mortgage rates are going to move up greatly in a very short period of time. Well, last week, mortgage rates moved from 5.05% to 5.45% in less than four days. No one knows if that is going to continue this week but it is possible.
If you want to lock in at a low mortgage rate I would suggest you start contacting some of the lenders that are still advertising rates below 5%. You might not get rate this low, but you do not want to wait until average mortgage rates are 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 – 3.85%
The correlation shows that the 30 year fixed rate should be approximately 5.75%. Actual rates…
30 Year Fixed Rate Mortgage – 5.45%
Comments
Leave a Reply