Jul 10, 2009 2
Mortgage Interest Rates Falling with the Treasury Yield
It seems highly likely that mortgage interest rates are going to fall with the 10 Year Treasury Rate Yield. Earlier this week the Federal Reserve Bank announced they were going to purchase US debt which sent the yield on the 10 year plummeting. After the news finally settled in, the yield was down almost 5%. Average mortgage rates are sure to fall as well as there is a very strong correlation between the 10 year treasury rate yield and the interest rate on the 30 year fixed rate mortgage.
This might not be good for America in the future as we are likely to see inflation, but this is great news for anyone who was thinking about refinancing or buying a new home. No one really knows how low mortgage rates are going to go, but it does seem likely they will go lower for awhile. If we do see any type of bounce, it is likely the Federal Reserve will step in an do what it takes to keep mortgage rates low. While many of us many not agree with this tactic, we might as well take advantage of it while we can!