The average for 30 year fixed mortgage rates has dropped to 4.75% as interest rates continue to fall as the 10 year yield has fallen below its 200 day moving average. Yesterday we saw the 10 year treasury rate yield drop all the way to 3.55% which is the 2010 low.


Over the next several weeks it will be interesting to see how 30 year fixed mortgage rates and the 10 year treasury rate yield react. Interest rates tend to follow the 10 year treasury rate yield so a drop well below the 200 day moving average could mean that we see much lower rates in the near future.

Before making this assumption please understand that the 200 day moving average has served as a support level for quite some time for the 10 year treasury rate yield. At the beginning of September we saw the 10 year yield and 30 year fixed mortgage rates drop but then subsequently move up for an entire month after the 200 day moving average was broken.

With this in mind it would be wise to keep an eye on the 10 year treasury yield and see just how 30 year fixed mortgage rates react. While there is a good chance that we could see moderate to low interest rates in the future there is also a possibility that there could be a balance to a much higher level.

Author: Alan Lake