[Dakota69]

A good indicator if rates are on the rise or are coming down is to see
what the 10 year Bond is doing. When the 10 year note is on the rise
that means mortgage rates are most likely coming down. When the bond
market is declining, that means rates are on the rise. This is due to
supply and demand like in any industry. An example would be if the 10
year yield rose 21/32 I would be will to bet that rates are going to
increase by at least .25% immediately. Conversely, if the 10 year yield
drops 21/32, look for rates to drop.

A great site I use to check to see where the 10 year note is trading at
is http://money.cnn.com

[Todd H.]

"Dakota69" writes:

A good indicator if rates are on the rise or are coming down is to see
what the 10 year Bond is doing. When the 10 year note is on the rise
that means mortgage rates are most likely coming down.

I've head that exactly the inverse actually--that mortgage rates tend
to track the long bond roughly?



--
--
Todd H.
http://www.toddh.net/

[Dakota69]

Todd H. wrote:
"Dakota69" writes:

A good indicator if rates are on the rise or are coming down is to see
what the 10 year Bond is doing. When the 10 year note is on the rise
that means mortgage rates are most likely coming down.

I've head that exactly the inverse actually--that mortgage rates tend
to track the long bond roughly?



--
--
Todd H.
http://www.toddh.net/

Not sure what you are saying in terms of the long bond, could you
expand as mortgage rates are generally tied to the 10 year note?

[Dakota69]

Todd H. wrote:
"Dakota69" writes:

Not sure what you are saying in terms of the long bond, could you
expand as mortgage rates are generally tied to the 10 year note?

10 year us treasury bond = 10year t note = "the long bond"

--
Todd H.
http://www.toddh.net/

Like I said if the 10 year yield is raises then interest rates will
most likely decline due to supply and demand like anything else.
Currently home prices are staring to fall in much of the U.S. for a
number of reasons, but one major reason is because inventory is way up
causing a buyers market instead of a sellers market.

[Todd H.]

"Dakota69" writes:

Not sure what you are saying in terms of the long bond, could you
expand as mortgage rates are generally tied to the 10 year note?

10 year us treasury bond = 10year t note = "the long bond"

--
Todd H.
http://www.toddh.net/

[Clark W. Griswold, Jr.]

"Dakota69" wrote:

Not sure what you are saying in terms of the long bond, could you
expand as mortgage rates are generally tied to the 10 year note?

Bond _prices_ move in the opposite direction of bond _rates_. If 10 year bond
prices are going up it means the rates are falling & vice versa.

[catalpa]

"Todd H." wrote in message ...
"Dakota69" writes:

Not sure what you are saying in terms of the long bond, could you
expand as mortgage rates are generally tied to the 10 year note?

10 year us treasury bond = 10year t note = "the long bond"

--
Todd H.
http://www.toddh.net/

The long bond is the 30 year treasury bond, not the 10 year note. 30 year
mortgage rates are tied to the 10 year note because the average weighted
life is about 12 years.

[Todd H.]

"Clark W. Griswold, Jr." writes:

"Dakota69" wrote:

Not sure what you are saying in terms of the long bond, could you
expand as mortgage rates are generally tied to the 10 year note?

Bond _prices_ move in the opposite direction of bond _rates_. If 10 year bond
prices are going up it means the rates are falling & vice versa.

Ah ha!

Okay, now it all makes sense.

--
Todd H.
http://www.toddh.net/

[[email protected]]

Dakota69 wrote:
Todd H. wrote:
"Dakota69" writes:

Not sure what you are saying in terms of the long bond, could you
expand as mortgage rates are generally tied to the 10 year note?

10 year us treasury bond = 10year t note = "the long bond"

--
Todd H.
http://www.toddh.net/

Like I said if the 10 year yield is raises then interest rates will
most likely decline due to supply and demand like anything else.
Currently home prices are staring to fall in much of the U.S. for a
number of reasons, but one major reason is because inventory is way up
causing a buyers market instead of a sellers market.


The yield on 10 yr notes moves in the same direction as mortgage rates,
because they are similar instruments. What moves in opposite
direction is the price and yield on all securities. These securities
are issued at fixed interest. As an example, that means the party
making payments will pay $50 for every $1000 borrowed. Now, if in the
current market they are being traded for $900, that means the yield is
now 5.56%

[Dakota69]

wrote:
Dakota69 wrote:
Todd H. wrote:
"Dakota69" writes:

Not sure what you are saying in terms of the long bond, could you
expand as mortgage rates are generally tied to the 10 year note?

10 year us treasury bond = 10year t note = "the long bond"

--
Todd H.
http://www.toddh.net/

Like I said if the 10 year yield is raises then interest rates will
most likely decline due to supply and demand like anything else.
Currently home prices are staring to fall in much of the U.S. for a
number of reasons, but one major reason is because inventory is way up
causing a buyers market instead of a sellers market.


The yield on 10 yr notes moves in the same direction as mortgage rates,
because they are similar instruments. What moves in opposite
direction is the price and yield on all securities. These securities
are issued at fixed interest. As an example, that means the party
making payments will pay $50 for every $1000 borrowed. Now, if in the
current market they are being traded for $900, that means the yield is
now 5.56%

Lets keep it simple I think the question has been answered. If you have
any more questions please feel free to post them here or visit my free
mortgage forum at www.MortgageForumLive.com.