Mortgage Interest Rates October 22 – Rates Steady; Treasury Yields Up
Posted on | October 22, 2009 | No Comments
Mortgage interest rates for October 22nd, 2009 are showing that rates are steady while treasury yields are up. The conventional 30 year fixed mortgage rate is at 4.82% while the 15 year fixed is at 4.28%. The 5/1 is unchanged at 3.73%. At this time the 10 year treasury rate yield has worked its way back up above its 50 day moving average but it is still very early in the trading day.
If the 10 year treasury rate yield can stay up its 50 day moving average there is a good chance we are going to see an acceleration of the current up trend. If this does happen mortgage rates are going to move higher, much higher than the current levels. When the 10 year yield was pushing 4% this summer the 30 year fixed mortgage rate was around 5.6%.
We can expect to see this again if the 10 year yield breaks away from the 50 dma and starts moving drastically higher. Obviously there is a long way to go to get to 4% with the yield currently sitting at 3.44% but with the Fed stopping the purchases of US Treasuries anything can happen. If it took the Fed sinking money into treasuries to hold them down what will happen when this stops? Only time will tell.
Make sure to check out Subprime Blogger on a daily basis for your mortgage interest rates. We will display the current rates as well as a short commentary similar to the above column. Bookmark the following daily mortgage rates category to gain easier access to our mortgage interest rates column:
Author: Alan Lake
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