What to know:
Treasuries and Mortgage Rates
Yields on 10-year and 30-year Treasury securities are typically used to set long-term mortgage rates. Loans with short initial terms (1-, 3-, and 5- year ARMs, e.g.) are pegged to shorter-term securities. So when bond yields drop, typically, conventional mortgage rates fall as well (see historical graph below). Conversely, when yields rise, so do mortgage rates. Why? If a lender chooses to sell your mortgage loan to an investor, the lender will likely use Treasury yields as a benchmark for value.
As a result of today’s sell off on Wall Street the Treasury yields looked like this:
If you are curious at what forecasters are predicting for the bond you can review that here
Today’s rates from lender in Cincinnati can be reviewed here courtesy of Bankrate.com
HFN advises, if detailed questions about your current rate or future rate for purchases, please contact your loan officer. If you are interested in informing yourself with rate options, HFN can provide all contact information for local loan officers we work with on a daily basis.
