The Federal Reserve bought millions of dollars of 10-year Treasury notes when it began their asset purchases back in 2008. And now those same 10-year Treasury notes are maturing. The result? 10-year Treasury note yields and the 30-year mortgage rate are on the rise.
And mortgage purchase applications are on the decline.
Treasury notes will be maturing in large quantities over the next several years and it will be a while before a large quantity of agency MBS will be maturing.
Let’s see if the trend continues this week when the Mortgage Bankers Association releases this weekly survey of mortgage bankers.
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