I find it amazing that we have held this area in rates for so long. On the 10 yr treasury we have held right at 2% for over 3 months meaning mortgage rates have held around 4% on the 30 yr fixed. It’s hard to believe that investors are willing to hold for such a small return but it clearly shows that people are more concerned with conserving wealth as opposed to creating it. The long term chart still shows danger that rates could pop back up but for the present time the only thing that points to an increase in rates is the way the stock market has moved up. Although bond traders are known to be smarter then stock traders meaning the majority would bet the stock market will come back down to the bond market.
The other big news today was a 10 yr treasury auction which came in at 1.9% and had plenty of buyers. This again shows us that traders have finally recognized that these low yields are not a one hit wonder but that they could make money as yields could go lower.
In simple terms the message is very similar to the last 3 months if you have not refinanced or at least reevaluated your situation in the last 3 months you need to do so now. Rates are at historical lows and if you haven’t taken advantage of this you are leaving money on the table.
Check out the 10 yr treasury chart (Chart is a 3 month chart and shows yield on the right side)