Mortgage Rates and Ten Year Yield

Source: Calculated Risk


Its almost as if the standard conforming mortgage loan somehow uses the 10 Year bond yield as a signal or something (lol).

Here is Bill:

With the ten year yield getting close to 3%, there has been some discussion about whether mortgage rates would hit 5% soon. Based on an historical relationship, 30-year rates should currently be around 4.75%. . .

To reach 5% (on the Freddie Mac survey), based on the historical relationship, the Ten Year yield would have to increase to about 3.25%.

Good stuff.


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