Browse Our Site:
Search Mortgage Library:
Types Of Mortgage Loans Mortgage Lender Directory  +  Mortgage Calculators  +  Mortgage (ARM) Indexes Mortgage Market Survey
+ Find The Best Mortgage + Ask A Mortgage Related Question  +  Articles And Publications  +  Mortgage Glossary + Search Mortgage Rates +
Credit Grade Guide Historical Mortgage Index Data  +  Historical Mortgage Rate Data  +  Home Interest Rate Trends

Treasury Market and Mortgage Rates

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.

30 Year T-Bond vs. 30 Year FRM, Prime Rate, 1977 - 2006
30 Year T-Bond vs. 30 Year FRM, Prime Rate, 1977 - 2007 { Obtaining Permission to Reproduce }

Treasury Yield Curve

The Yield Curve - the yields of U.S. Treasury bill, notes and bonds - can reveal a lot about markets. The "usual shape" of the yield curve is positive; that is, with short term rates lower than long term. Almost all recessions have been preceded by an inverted curve (with short term rates higher than long term), and such a curve usually points to lower rates in the future. A steeply positive curve points to future higher rates.

Treasury Yield Curve
Treasury Yield Curve
Treasury Yield Curve
Treasury Yield Curve
30 Yr T-Bond
, 10 Yr T-Note, 5 Yr T-Note
(Yahoo! Finance)
News on Mortgages and Treasuries

The Latest Rate News

Treasury Yield Curve Dynamics
Historical graphs showing how the shape of the the yield curve changes over time. Latest Treasury Bond News and Financial Information: ( ) Rates & Bonds: ( )

Economic and Financial News

CNN/Money ( - SmartMoney ( - MarketWatch ( - Forbes (
The Economist ( - Kiplinger's ( - The Wall Street Journal (


Mortgage Lender Directory + Find The Best Mortgage + Search Mortgage Rates

Interest Rate Forecasting: Economic Indicators  |  Mortgage Market Survey  |   Interest Rate Trends

Treasury Market and Mortgage Rates  |  Historical Mortgage Rate Data   |  Mortgage Indexes

Mortgage professionals are welcome to participate!
Home  +  About Us  +  Contact Us  +  Disclaimer  +  Privacy Policy
Copyright � 1998-2014
All Rights Reserved