Economist's Commentary: October 7, 2008
Quick Take on the Economy: October 7, 2008
By Ken Fears, Manager, Regional Economics 
Treasury Yields
- The yield on the U.S. 10-year Treasury bond has fallen sharply since last Monday. The yield on the Treasury bond was 3.83 percent on September 30, but slid 40 basis points in 6 days to close yesterday's trading session at 3.43 percent.
- The yield has only traded below this level for 3 sessions in the last 5 years.
What does this mean for Realtors® and consumers?
- Concerns over international financial markets are driving investors into the safest asset the globe knows, U.S. Treasury bonds.
- This pattern is putting downward pressure on mortgage rates. A buyer with great credit and money to put down could snatch up a fantastic opportunity on financing.
Daily Forecast Update
- NAR's monthly official forecast as of September 9th (15K PDF)
- GDP Q3: 0.0%
- GDP Q4: -0.7%
- Unemployment rate by year end: 6.5%
- Average 30-year fixed mortgage rate in December: 6.2%
- Average 30-year fixed mortgage rate by mid-2009: 6.0%
- The next Fed policy change: a rate cut in October.
This is one in a series of commentaries by the Research staff of the National Association of REALTORS®. Read more commentaries >
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