Mortgage Interest Rates Could Move Higher with 10 Year Treasury Rate Yield Uptrending

Filed Under (Mortgages) by admin on 09-02-2010

There is a very good chance that we could see mortgage interest rates start to move higher over the next few weeks as the 10 year treasury rate yield looks to be uptrending again.  The 10 year yield briefly broke below its 50 day moving average but has seen move back above it and has started another uptrend.  For the entire year of 2010 the 10 year yield has been consolidating to moving sideways which has kept mortgage rates low.

Now that the 10 year yield looks to be moving higher again there is a possibility that the 30 year fixed mortgage rate is going to trouble well higher than 5%.  The last time we saw the 10 year treasury rate yield get close to 4% we saw 30 year fixed mortgage rates around 5.6%.  No one knows if the same will hold true for the winter of 2010 but it sure seems that the 10 year forego is making an assault on 4% once again.

There are many analysts that have predicted that mortgage interest rates are likely to rise beginning in the spring of 2010.  One Morgan Stanley economist actually predicted mortgage rates as high as 8%.  While this might be a stretch in that place is definitely the possibility of higher mortgage rates as the Federal Reserve Bank has been holding rates lower for entirely some time.

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