Daily Mortgage Rates and 10 Year Treasury Rate – July 9th
Posted on | July 9, 2009 | 1 Comment
Yesterday we had a breakdown of the interest rate on the 10 year treasury rate. The Federal Reserve continues to buy United States debt which repeatedly sends the treasury rate much lower. The treasury rate was down almost a full five percent yesterday to 3.29%. This is well below the 50 day moving average and below the lower uptrending support line. I expect a break and retrace back to the 50 day moving average and then we should move lower to the 200 day moving average. That would be if there is NO MORE government interaction, which obviously we have no clue what they may do at this point.
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 – 3.29%
The correlation shows that the 30 year fixed rate should be 5.31%, actual rates….
30 Year Fixed Rate Mortgage – 5.21%
Once again, it is very likely we will see lower mortgage rates as Ben Bernanke continues to put the Federal Reserve in deeper debt. This is great news for anyone that wants to refinance or get an extremely low mortgage rate at the moment!
Tags: 10 year treasury rate > Ben Bernanke > daily mortgage rates
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July 13th, 2009 @ 5:19 am
[...] it looks as if home loan mortgage rates are going to continue lower this week. Last week the 10 year treasury rate yield was down significantly so there is no reason that daily mortgage rates do not sink with the 10 [...]