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.