Get Ready for a Bond Rally

In the past six months, the 10-year U.S. Treasury yield surged to about 3% in September from about 1.6% in May, and it has declined to about 2.5% since. Over the next six months I expect the rate to continue its decline, back to the 1.6% range by spring.

Because mortgage spreads for Fannie Mae and Freddie Mac debt have declined during this time (and I expect that to continue), the 30-year fixed conventional conforming mortgage rates should be below 3% at par by spring, which is even lower than in late 2012 and the first half of 2013....599 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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