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Daily Mortgage Rates and 10 Year Treasury Rate – July 24th

admin — Fri, 24 Jul 2009 13:05:03 +0000

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%

Daily Mortgage Rates and 10 Year Treasury Rate – July 23rd

admin — Thu, 23 Jul 2009 13:30:20 +0000

Sorry for the absence of the daily mortgage rates yesterday, hopefully I will not let that happen again. With that, yesterday proved to be another solid upward trending day for the 10 year treasury rate yield. The yield pushed all the way back to the 50 day moving average which might be some resistance for a few days. There is still very strong support in the up trending lower support line which looks to be around 3.4%.

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 – 3.55%
The correlation shows that the 30 year fixed rate should be approximately 5.51%. Actual rates…

30 Year Fixed Rate Mortgage – 5.16%

What is VERY interesting to me is the fact that the 30 year fixed should be around 5.51% yet it is still well below 5.25%. This is very likely to change in the near future as I expect mortgage rates to push higher. We shall see…

Please check out the daily Subprime Blogger Rant; today I addressed the Health Care Bill:

To offset the 8% tax on payroll from the Health Care Bill, what do you think small businesses are going to do…..CUT PAYROLL! Great, more job cuts from small businesses, sounds like a great plan!

Please read the entire article here: Health Care Bill Will Further Ruin Our Economy!

Daily Mortgage Rates and 10 Year Treasury Rate – July 20th

admin — Mon, 20 Jul 2009 13:52:00 +0000

Please use Subprime Blogger to get your current mortgage rates forecast. There are also articles to assist you in getting the low mortgage rates you want!

The 10 year treasury rate yield shot up HUGE last week to the tune of 10%! This is going to force mortgage rates to react this week. It would not surprise me to see daily mortgage rates work their way all the way up to 5.5% before some consolidation. For those of you who were waiting for mortgage rates to drop below 5%, well, I think that is now out of the question for quite some time. The 10 year yield is now above the support level of the 50 day moving average and we are looking at the yield headed towards 4%.

If the yield does hit 4%, it will be likely that mortgage rates will be somewhere around 6%. As I have been saying for quite some time, this is very bad news for the overall housing market, but it might flush the bottom out as higher mortgage rates are going to bring even lower home prices.

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 – 3.65%
The correlation shows that the 30 year fixed rate should be approximately 5.52%. Actual rates…

30 Year Fixed Rate Mortgage – 5.59%

Please check out the daily Subprime Blogger rant; today I let Mr. Bernanke know how I feel:

Oh, so you are planning now for the “restoration of fiscal balance?” I call bullshit! The more statements that you make, the more I realize that you are full of shit Mr. Bernanke. Printing money in an attempt to spend our way out of this recession has not worked in the past so why do you think it will in the future?

Read the entire article here: Ben Bernanke, Please let the Markets Set Interest Rates

Daily Mortgage Rates and 10 Year Treasury Rate – July 16th

admin — Thu, 16 Jul 2009 14:08:37 +0000

Another crazy day for the 10 year treasury rate yield yesterday. A huge push higher now shows the 10 year yield well above the 50 day moving average. Has the Fed run out of ammo? The statement that the Fed sees joblessness above 10% shot the yield much higher yesterday. I am not sure where we go from here, but it looks as if the uptrend that started in January remains intact. Last week, I thought that trend was broken due to the penetration of the 50 dma, but I may have overestimated the lower trendline. After a few strong days by the yield, it looks as if it is going higher.

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 – 3.596%
The correlation shows that the 30 year fixed rate should be approximately 5.55%. Actual rates…

30 Year Fixed Rate Mortgage – 5.41%

Once again, if any chart technicians would like to correct me, please feel free to comment below. As I see it, the uptrend remains strong and it looks like the yield is heading higher which will send mortgage rates higher.

Daily Mortgage Rates and 10 Year Treasury Rate – July 14th

admin — Tue, 14 Jul 2009 13:42:05 +0000

Yesterday we saw a late run up in the 10 year treasury rate yield; nothing significant. I still think it is likely that the 10 year will retest its 50 day moving average and then move to the downside. Average mortgage rates ticked up a little bit yesterday and look to be ticking up slightly this morning. Should be an interesting remainder of the week as many of the large Wall Street companies start releasing earnings. This could tell us if the economy is showing any signs of a recovery.

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 – 3.35%
The correlation shows that the 30 year fixed rate should be approximately 5.35%. Actual rates…

30 Year Fixed Rate Mortgage – 5.17%

Daily Mortgage Rates and 10 Year Treasury Rate – July 13th

admin — Mon, 13 Jul 2009 12:37:10 +0000

As many of you know the Federal Reserve Bank announced that it was going to continue to buy United States debt for the second half of 2009. During the first half of the year, the Fed injected $280 billion into US debt and it is likely to increase over the remainder of this year. This is horrible news for the future value of the dollar but great news for anyone who wants to refinance or buy a new home.

In more words or less, the Federal Reserve Bank is going to print as much money as it can to keep interest rates low. Obviously this makes no sense for the long term value of the dollar, but for now, take advantage of this opportunity. Once other nations stop investing in this country, inflation is going to be crazy and we are going to see interest rates skyrocket. For now, that is something we do not have to worry about as we are still getting financial aid from foreign investors.

With that being said, last week the 10 year treasury rate yield was down drastically. It cut right through the 50 day moving average and continued even lower. I would not be surprised to see a dead cat bounce this week, but ultimately we are headed lower which will bring mortgage rates down with it as well.

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 – 3.295%
The correlation shows that the 30 year fixed rate should be approximately 5.31%. Actual rates…

30 Year Fixed Rate Mortgage – 5.15%

Daily Mortgage Rates and 10 Year Treasury Rate

admin — Fri, 10 Jul 2009 15:03:16 +0000

Just as expected, the 10 year treasury rate yield bounced back in a big way yesterday. I look for continued break and retrace action from the 10 year. It could work its way closer to the 50 day moving average, but that line will now serve as resistance instead of support. I think will all know that Ben Bernanke is going to pull out all stops to cap interest rates so we may just see the 10 year tank straight to the next support level, the 200 day moving average. With that in mind, look for average mortgage rates to head lower throughout the summer unless free market capitalism actually starts to work.

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 – 3.41%
The correlation shows that the 30 year fixed rate should be 5.40%, actual rates….

30 Year Fixed Rate Mortgage – 5.19%

Average Mortgage Rates Moving Lower?

admin — Thu, 09 Jul 2009 18:35:39 +0000

Please use Subprime Blogger to help you get the best fixed rate mortgage to suit your needs. There are also several articles available to help you find low mortgage rates.

Earlier this week I wrote an article on how it was possible that we would see higher mortgage rates if the government did not interfere. Obviously that is not the case as the Federal Reserve decided that it would buy more US debt yesterday. I think we all know in the back of our minds that this is a bad idea. All the Federal Reserve is doing is trying to print their way out of this recession. The value of the dollar is going to plunge when other countries figure out that we are no longer the financial giant we once were.

With that being said, it looks as if average mortgage rates are going to go much lower. We are seeing a bounce back in the 10 year treasury rate, but this is the exact break and retrace movement I was expected. I fully expect the 10 year to try to make its way back to the 50 day moving average and then work lower to the support of the 200 day moving average. Once again, that is the way the market generally works, but who really knows what President Obama and Ben Bernanke are up to.

One thing is for certain, if you have been thinking about refinancing or getting your first mortgage, you are going to continue to have the opportunity of a lifetime as our President refuses to let the market set interest rates. If I were you, I would pursue that first mortgage or refinance now as we have no idea when we are going to see a sling shot effect in mortgage rates. When this does happen, we are likely to see daily mortgage rates shoot up quite a bit in a short period of time.

Daily Mortgage Rates and 10 Year Treasury Rate – July 9th

admin — Thu, 09 Jul 2009 13:39:40 +0000

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!

10 Year Treasury Rate Breaks Down After Fed Buys US Debt

admin — Thu, 09 Jul 2009 04:10:40 +0000

Please use Subprime Blogger to get your average mortgage rates and analysis on how it will affect the economy. There are also articles that help to assist you by giving you an interest rate forecast.

I think all that needs to be stated is this:

Yields on 10-year securities fell the most since March 18, when the Federal Reserve said it would buy U.S. debt in an effort to cap borrowing costs. The bid-to-cover ratio, which gauges demand by comparing total bids with the amount of securities offered, was 3.28. The note sale is the third of four this week totaling $73 billion. Traders speculated that company earnings reports scheduled to start today will show profits fell in the second quarter.

Why oh why is the Federal Reserve continuing to create artificial mortgage rates? At one point President Obama and Ben Bernanke are going to realize that the Federal Reserve Bank is not a printing press. They are keeping interest rates low over the short term but that is going to cause inflation to be absolutely nuts in the future. I really wish someone on President Obama’s advisory board would point out that eventually this is going to come back to bite us in the ass.

Just as Jim Rogers stated yesterday, eventually other countries are not going to loan us money at rates this low. They are going to realize that America is in deep shit in terms on monatery policy and debt which will cause them to opt out of buying bonds from the United States. I am not sure when Ben Bernanke and Obama are going to let the market set interest rates, but I sure hope it is much sooner rather than later. I honestly hope we do not have another 1982 with the economy as bad as it is, but it sure seems likely at this point.