The Spread Between Mortgage Rates and Treasury Notes Increases in July
The 10-year U.S. Treasury note is traditionally a stand-in measure of the risk-free rate that the U.S. government offers on debt. However, although the 10-year U.S. Treasury note experienced a downward trend in July, dipping below 0.6%, mortgage rate through July failed to decrease proportionately. As tracked by the Freddie Mac Primary Mortgage Market Survey, the spread between the 10-year Treasury and the 30-year fixed-rate mortgage rate stayed constant through the first half of July and then increased slightly in the second half of the month. The spread between these two rates expanded at the end of July, hovering just above 240 basis points.
FEA compiles the Wood Markets News from various 3rd party sources to provide readers with the latest news impacting forest product markets. Opinions or views expressed in these articles do not necessarily represent those of FEA.