30-Year Mortgage Rates vs. 10-Year Treasury Yield There is a very high correlation between the 30-year mortgage rates and the 10-year treasury yield 30-year mortgage rates = 1.739 x (10-year treasury yield)² + 0.7755 x (10-year treasury yield) + 0.0227 R² = 0.9787 Image: Calculated Risk
US Long-Term Mortgage Rates Decline: 30-Year Average 4.10% & 15-Year Average 3.57% Why US long-term mortgage rates decline? Mortgage costs are influenced by the 10-year Treasury yield which was lower this week, because the trade war between the United States and China pushes investors moving money from stocks to bonds. Bond yields fall as prices rise.…
What are the Average Interest Rates for Fixed-Rate Mortgages Since the Great Recession? Keep in mind that mortgage lending is down, because there aren’t enough houses on the market to meet demand and the increase in rates does not help either since 2017. However, the decline in interest rates since the end of 2018, helps…
U.S. Housing Market – MBA Purchase Index Mortgage applications in the U.S. continue to decline due to a combination of high interest rates and elevated home prices, resulting in a 28-year low. Image: The Daily Shot
U.S. Fixed Rate CMBS Index Price Commercial mortgage-backed securities prices are currently at their lowest since October 2009. Image: BofA Global Investment Strategy
Housing Market – U.S. MBA Purchase Index Mortgage applications are on a downward trend as mortgage rates rise, which is a major factor in the slowdown in the U.S. housing market. Image: BofA Global Investment Strategy
U.S. Existing Home Sales High mortgage rates do not bode well for existing home sales in the United States. Image: BofA Global Research
Housing Market – U.S. Housing Starts U.S. housing starts drop in October amid rising mortgage rates. Image: The Daily Shot
Fed MBS Holdings and FHFA House Price Index Despite a strong U.S. housing market, the Federal Reserve continues to buy mortgage-backed securities (MBS). Image: BofA Global Investment Strategy
Delinquencies as % of Total Loans This chart shows the highest mortgage delinquency rate in nine years. Image: The Daily Shot