In the ultimate sign of a flight to safety, the 10-Year Treasury hit an all-time low yield this morning at 1.652%. All that money flowing out of southern Europe has to go somewhere. And apparently they are choosing something safe like Treasuries. Just when you thought interest rates couldn’t get any lower…
56% of the stocks in the S&P 500 have dividends yields that are now higher than the 10-year Treasury yield.
MBA Mortgage Applications were off slightly, down -1.3%, meanwhile Pending Home Sales are up 14.7% Year Over Year, and Pending Home Sales Month Over Month were down -5.5%. All numbers were much lower than economist expectations reflecting larger than expected contract cancelations due to appraisal and credit issues.
My guess is that with the 10-year getting even lower, that mortgage rates are going to go even lower too. Now if only you could qualify for a mortgage…
Assistant State Treasurer
Chief Investment Officer
State of Louisiana
Department of the Treasury