1. Daily Economic Update
 The average 30-year fixed rate mortgage hit a record low of 4.17% last week as reported
by Freddie Mac.
 The 10-year Treasury note reached a yield of 2.54% in October, its lowest level since
January of 2009 when it hit 2.52%, but increased 17 basis points between November 4th
and the 10th
to 2.65% following the Federal Reserve’s announced Treasury purchase
program. The 30-year Treasury bond reached a yield of 3.77% in September before
tracking up to 3.87% in October and jumped 20 basis points between the 4th
and 10th
of
November
 RealtyTrac reported a 4% decline in foreclosure notifications in October compared to a
month earlier. That group cited legal issues surrounding the signatures on legal
documents at banks as the reason for the decline.
 The spread between the 30-year fixed and the 10-year Treasury widened this spring and
summer as Treasury rates tumbled on bad economic news. As the economy improves
and inflation concerns rise, yields on Treasury instruments will increase and rates on
long-term mortgage rates will follow suit.
 The robo-signing scandal has raised concerns about the legal process surrounding
foreclosures and how it will impact bank books. However, the foreclosure rate is likely
to rise once the loans in question have been reviewed and the banks reform their
process for filing foreclosure documents.
Produced by NAR Research
November 11, 2010