by Calculated Risk on 6/12/2007 09:40:00 AM

Click on graph for larger image.

Here is scatter graph showing the 30 year fixed rate mortgage (Freddie Mac average monthly rate) vs. the monthly average Ten Year treasury yield for every month since January 1999.

The parallel lines show the 30 year rate 150 bps and 200 bps above the Ten Year yield. Although there are other factors in determining the 30 year rate, the Ten Year yield (and adding 150 to 200 bps) gives a pretty quick approximation.

Currently (this morning) the Ten Year yield is at 5.2% implying a 30 year rate of 6.7%+.