The Treasury yield has been under 3% for months, down from higher rates in 2000 and 2004-2007, keeping mortgage rates low historically. However, a worsening of the Irish debt crisis could spread to Europe and severely restrict credit availability for various types of mortgages and real estate development loans if the crisis spreads.

1. Daily Economic Update
 The Ten Year Treasury yield has been well under 3 percent for the past few months, down
from the 6 percent range in 2000 and the 4.5 percent range in the 2004-07 time frame. As
a result of declining interest rates mortgage rates continue to be exceptionally attractive in
comparison to historical experience.
 The major unknown-unknown on the interest rate scene is the Irish debt crisis. If the
crisis worsens or spreads to Europe in general, then credit available for private
mortgagees--including jumbos, commercial real estate, and real estate development—
would be very adversely impacted.
Produced by NAR Research
November 22, 2010