A Question Often Asked after a Change to the 10 Year Treasury Rates

10 Year Treasury Rates or 30 Year Bond

Q: "I just heard that 10 year Treasury rates went down yesterday by ...  Does that lower my mortgage rate?"

A: "Although in most cases Mortgage rates and 10 year Treasury rates move the same direction, they do not move by the same amounts. An investor can lose money on a Mortgage if the loan/home goes into foreclosure. A Treasury note is backed by the United States government so it has no credit risk. This difference can cause the rates to go up and down at a different pace and, in some rare cases, actually move in different directions."