Mortgage rates are going up. How high?
How high mortgage rates are going to go in 2009 isn't as important as the mere fact that they are going up. Even .50% increase will threaten not only the housing market but the overall economic recovery and the still ongoing stock rally. As we pointed out many times, the interest rates move together with bond yields. Mortgage rates are tied to the 10 year Treasury Bond, which yield as you can clearly see here, has climbed from 3.1% to 3.9% in less than a month, subsequently pushing rates by .375% to .625%, depending on the mortgage program . Why is that happening? The government tries to sell billions of dollars in debt to finance the economic recovery and financial rescue. But apparently, there are not enough buyer demand to meet the supply, resulting in the sell off and lower Treasury prices pushing yields up. Three more treasury actions are coming this week, with total of $65,000,000,000 worth of notes -
Tuesday, June 9 at 1:30 pm, ET
3-year Treasury Note Auction
$35 billion of notes will be auctioned
Wednesday, June 10, 1:30 pm, ET
10-year Treasury Note Auction
$19 billion of notes will be auctioned
Thursday, June 11, 1:30 pm, ET
30-year Treasury Bond Auction
$11 billion of bonds will be auctioned.
We can only hope that demand will be strong and the interest rates will be pushed lower.
Mon Jun 8, 2009 04:06PM | Copyright: www.bad-credit-advisor.com | More in Mortgage | Comments (0)
Recent Entries
- Capital One Secured Credit Card to Improve Credit Score - Review
- How to get approved for mortgage - loan approval help
- Spouse average FICO credit score is higher?
- Why average credit score?
- Getting mortgage after bankruptcy - go FHA
- Debt settlement and how it affects credit score
- Debt settlement with Citibank
- Can I settle with credit card company with no late payments?
- Credit card limit lowered, credit score goes down
- Gold price will rise in 2011
