San Antonio Mortgage Rates Rise

San Antonio Mortgage Rates Rise

10 Yr Takes a Big Hit

As reported in CNNMoney.com -- Bond prices fell late Monday, rates up, as investors shifted their attention to higher-yielding assets like equities amid optimism about the economy.

"People are positioning ahead of next year, trying to focus on 2010," said Bill Larkin, analyst at Cabot Money Management. "They're hoping for a brighter new year."

Investors typically buy Treasurys as a so-called safe play because they are backed by the government with a guaranteed yield, although those yields are generally lower than stock returns.

Treasury prices fell Monday, with the 10-year note yield rising to 3.68% from 3.50% late Friday. Prices and yields move in opposite directions.

Yield curve geometry

The curve, which measures the difference between the yields of the 2-year and 10-year bonds, has been steepening. On Monday the curve hit 2.78%, or 278 basis points. Compare that with a year ago, when it was 2.16%.

Early Tuesday morning bonds are continuing the slide. Current 10 yr yield is at 3.73% at 8:30a.m., CST. up from the close at 3.68%. Rates in the San Antonio area were up an eight of percent Monday from Friday.

LOCK! LOCK! LOCK!

Steve Brown

Senior Loan Officer

Gold Financial Services

Office: 210-658-7474

Cell: 210-862-2885