After the unemployment numbers were released, almost everything was down yesterday.? The S&P 500 dropped almost 3%.? As many of you know, I have been expecting this for quite some time as jobs are just not being created in this economic environment.? With that being said, the 10 year treasury rate is getting VERY close to the strong support of the 50 day moving average.? I expect to see a strong bounce off the 50 dma in the next few weeks, so what for mortgage rates to go much higher when this happens.? The equation used for the correlation between mortgage rates and the 10 year treasury rate is

y = 2.7283(x)^2 + .5881(x) +.0308.

10 Year Treasury Rate – 3.50%
The correlation shows that the 30 year fixed rate should be approximately 5.47%.? Actual rates?

30 Year Fixed Rate Mortgage – 5.38%