Lets take a look at the spread between the 10-year and 2-year yield in the past, and how it has historically been a very accurate sign of a recession once the spread goes to 0 or becomes inverted. While the spread is not at 0 or inverted, it is getting very close at only 13bp. which is a sharp ... » Learn More about Mortgage Rates Drop – Yield Curve Close to Inverting
yield curve
Yield Curve Drops Making ARMs More Expensive Relative to Fixed Mortgage
The yield curve, or difference between short term interest rates compared to long term rates have tightened. This is due to the long term interest rates (10yr/30yr notes) staying fairly stable over the past 6 months, but the short term rates (1yr/2yr notes) have gone up. The increase in short term ... » Learn More about Yield Curve Drops Making ARMs More Expensive Relative to Fixed Mortgage