Boston Real Estate for Sale

Interesting tid-bit.  Use this next time you’re at a cocktail party and someone (a blowhard) starts rambling on about mortgage loan rates.

Link: Mortgage Matters — Daily mortgage advice from Holden Lewis.

IN THE E-MAIL: Daniel from (I believe) Seattle writes: “I appreciate your effort to keep prospective home buyers apprised of what is occurring in the market. However, the 30-year fixed mortgage rate is not related to the 10-year Treasury. The correct index is the FNMA 30-year 5.5 percent mortgage bond. The two indexes may trade in similar fashions, but daily trading is centered on the yield for the later.”

I get this criticism occasionally. It is true that Treasury yields don’t directly affect mortgage rates. But Treasury yields and mortgage rates tend to move in the same direction and at roughly the same speeds. Also, when you watch the crawl on a cable news channel, or listen to Marketplace on the radio, you can easily find out what’s going on with Treasury yields. Not so with yields on Fannie Mae mortgage bonds or required net yields.

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Boston condos for sale


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Updated: December 2017

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