What affects the 30 year mortgage rate?

BiterChloe asked:


I am doing a regression analysis for a finance class, and I want to look at variables that affect the 30-Year Conventional Mortgage Rate. (eg. 10 yr Treasury note rates).

I just need suggestions on variables that may affect mortgage rates. Thank you!

Tamara

Tags: Finance Class, Treasury Note, Variables

This entry was posted on Sunday, March 22nd, 2009 at 5:09 am and is filed under Mortgage Loans. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

4 Responses to “What affects the 30 year mortgage rate?”

1. Bob Says:
   March 22nd, 2009 at 9:51 am

   Julio

   Anticipated inflation is the main thing that affects all long term rates. You should see a difference between US gov rates and other rates due to the risk of default.

   Try and do regressions against many series for Treasury data, 1-year, 5-year, 10-year and 30-year.

   What can you get with alternative investments if you weren’t lending on mortgages? Look at S&P 500 yield and S&P 500 average P/E ratio.

2. Dpope Says:
   March 23rd, 2009 at 12:06 pm

   Alice

   the fed funds rate, money supply. you could say the dollar. you could also say inflation. If inflation is high the fed will raise rates to combat infaltion which will raise interest rates. Credit scores will affect individuals mortgage rates.

3. hbgdragon Says:
   March 26th, 2009 at 11:40 pm

   Joy

   I believe that mortgage rates are most tied to the 10 year Treasury, and to some extent, the LIBOR rate. That’s according to my friends in the mortgage biz.

   Scott Cole

4. Rocco C Says:
   March 30th, 2009 at 4:16 am

   Franklin

   View It Now FinanceExtends (dot) com

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