by Calculated Risk on 6/06/2018 12:20:00 PM
Wednesday, June 06, 2018
Mortgage Rates and Ten Year Yield
With the ten year yield getting close to 3%, there has been some discussion about whether mortgage rates would hit 5% soon. Based on an historical relationship, 30-year rates should currently be around 4.75%.
As of yesterday, Mortgage News Daily reported: Mortgage Rates Hold Steady
Mortgage rates were little-changed today after rising somewhat quickly over the past 4 business days. … In terms of mortgage rates, we might think of it as an average 30yr fixed rate teetering between 4.625% and 4.75%.The graph shows the relationship between the monthly 10 year Treasury Yield and 30 year mortgage rates from the Freddie Mac survey.
emphasis added
To reach 5% (on the Freddie Mac survey), based on the historical relationship, the Ten Year yield would have to increase to about 3.25%.