Change Since August 6, 2020

The 30-year mortgage rate is down 9 basis points

The 10-year mortgage rate is down 23 basis points

The 10-year US Treasury yield is up 72 basis points

The current divergence is more than a bit unusual.

What's It Mean?

Realistically, mortgage rates ought to be 75 to 100 basis points higher than they are.

The Fed via QE asset purchases is doing a far better job manipulating mortgage yields lower than it has done controlling yields on long-term treasuries.

On February 8, the Fed noted Monetary Policy Will Stay Accommodative For a Very Long Time. I commented "Like Forever".

My question on February 14 still stands: How Long Before the Fed Tries to Manipulate Long-Term Rates Lower?

Mish