The US 10 year bond is an indicator of mortgage interest trends in the United States. Geithner's Treasury department will sell 60 Billion of 10 year bonds this week, but the US Dollar isn't the only game in town. Investors are starting to believe that the sky isn't actually falling, and they have other options.
10 Year bonds in other currency denominations are looking for buyers too. The yields in these two daily charts from Bloomberg.com show that Geithner and company will have to pay more to attract those buyers, or they won't be able to sell the bonds.
What does that mean to you and me?
At the same time that your home value is falling, interest rates are rising again. That's a problem for individuals who are focused on the promise of cheap money in the mortgage markets. Eroding home values are the greater danger to your ability to refinance your present loan.
I'm Mike in Tucson, your preferred Tucson, AZ Mortgage lender.
Think of me as your Tucson mortgage expert.
Call me if I can help you with a purchase or refi mortgage;
(520) 349-9090
charts courtesy Bloomberg.com
Mike, this is an interesting point and one that you do not hear people talk about.
MORNING MIKE! One of my clients is struggling with this issue right now - especially with all the talk of low interest rates - and not understanding why he can't find "what he is hearing about on the news." -- Gabrielle
Great information.
I have a client struggling with this as well...
I have been talking to buyers about the double affect of rising interest rates and prices that might start moving back up for sometime. Has that day arrived?
Terry,
I think it's here.
Toula,
Have you shoveled out from under all that snow?
Gabrielle,
Send the client to www.Bloomberg.com and have him click on Markets>Bond.
Don,
Thanks for being the first to comment! See you over on your blog.
Mike in Tucson