Miami Home Loan staff knew rates would eventually increase at some point, but these last two weeks have been violent, with Bond mutual fund redemptions fueling an already quick selloff. Since May 1, the yield on the 10-Year Note has rised from 1.63% to 2.63% and at the same time, the 3.5% coupon has lost 734 basis points. The end result of all of this volatiltiy in the makets mean the rates have risen dramatically, up to aorund 4.50% to 4.75% in a few short weeks. Almost a whole % point in a few weeks!
Tomorrow, the Treasury department will see a total of $99B (Billion) in 2, 5, and 7 Year Notes this week beginning on Tuesday. It will be very interesting to what the investors decide to buy with yields have reached levels not seen in years.
Call me, Jim Carter, at Element Funding to discuss your Miami Home Loan, and, how you can achieve the dream of home ownership. 305-525-6742