10 Year Treasury Rate Goes Under 50 Day Moving Average
Yesterday, after the Fed decided to buy more United States debt, the interest rate on the 10 year treasury rate plummeted almost 5%. This is great news for those of you who are in the process of buying a new home or refinancing. It is likely that we are going to see mortgage rates much lower now that the Federal Reserve continues to step in to push mortgage rates lower. Eventually this is going to come back to haunt the United States government but for now the Fed thinks they can spend themselves out of this recession.
10 Year Treasury Rate Pushing Mortgage Rates Higher
Since the beginning of the year, the 10 year treasury rate has been in a steady uptrend. In December, the rate was at 2.07% and just recently we almost hit 4%. This amazing ride has not been coupled with mortgage rates which is quite unusual. There is a strong correlation between mortgage rates and the 10 year treasury rate so it is very unusual see to one uptrend while the other is downtrend.
Well, that all changed about three weeks ago when it is likely we saw the end of low mortgage rates. Rates may have hit a bottome when they went under 4.8%. Since then it has been a straight up shot to over 5.5%. Bankrate is even reporting that average rates are just under 6%. There is a HUGE difference in getting a 30 year fixed rate mortgage in 4.8% and 6%. I hope all of you locked in on low rates!