When asking what drives mortgage interest rates and what are they based on, the correct answer is Mortgage Backed Securities (MBS’s) or Mortgage Bonds, NOT the 10-year Treasury Note as many people believe. While the 10-year Treasury Note sometimes trends in the same direction as Mortgage Bonds, it is not unusual to see them move in completely opposite directions. Let’s take a closer look at this.
Sr. Loan Officer
Home Loan Division