On Wednesday, June 10th, the 10 year treasury rate hit 3.988% before some late day selling.? Since then it has been a straight shot down to 3.79%.? I had predicted that the resistance level would be 4% but I did not think that it would almost hit the resistance level and then free fall for the next two days.? It will be very interesting to see how mortgage rates react to this.? I would believe that mortgage rates would fall with the treasury yield but it is not like they have been trending in the usual strong correlation that history shows us.

Next week is going to be very hard to make mortgage rate predictions because of this extremely volatile market.? For the sake of home prices and the housing market as a whole, I really hope we find some stabilization and head lower from here.? If rates continue to bounce back and forth, we are going to see lenders doing some very unusual activities as they are going to find it diffcult to find funding for mortgages.