Tag Archive for ‘Treasury yield’

Mortgage-Treasury Spread Trended Lower in September

In September 2020 and thru the first week of the 2020’s fourth quarter, the 10-year Treasury Constant Maturity rate trended slightly higher, while the 30-year fixed mortgage rate, as determined by Freddie Mac’s Primary Market Mortgage Survey (PMMS), trended lower. The net result of these movements was that the overall spread trended lower in September. The PMMS’s latest mortgage rate… Read More ›

Treasury-Mortgage Spread Decreases in August

The month of August, in terms of the spread between the 10-year U.S. Treasury rate and the 30-year fixed-rate mortgage rate, was characterized by weekly declines, only to rise slightly by the first week of September. The 10-year U.S. Treasury rate is the rate that the U.S. government is willing and obligated to pay on the 10-year Treasury note, thus… Read More ›

Treasury and Mortgage Rate Spread Widens in July

The month of July witnessed a sustained downward trend in the 10-year U.S. Treasury, as it dipped below 0.6%. Despite the downward trend of Treasuries, which are a proxy measure of the risk-free rate that the government offers on debt, mortgage rates through July did not decrease proportionately. The spread between the 10-year Treasury and the 30-year fixed-rate mortgage rate… Read More ›

Treasury-Mortgage Spread Stays Constant in June

The 30-year fixed-rate mortgage rate has been known to follow, albeit loosely, the 10-year Treasury yield. The latter is a widely tracked economic indicator and serves not only as a sign for the pulse of the U.S. economy, but also as a premium for pricing myriad financial instruments, upon which characteristics specific to the financial instrument are added. As 10-year… Read More ›

Uncertainty Looms as Economy is Poised for Recovery

The 30-year fixed-rate mortgage rate has been known to follow, albeit loosely, the 10-year Treasury yield. The latter is a widely tracked economic indicator and serves not only as a sign for the pulse of the U.S. economy, but also as a premium for pricing myriad financial instruments, upon which characteristics specific to the financial instrument are added. Throughout the… Read More ›