The 10-year Constant Maturity Treasury rose quite a bit on Friday and Monday today it is at 2.49%. But we’re still in territory where the Principal Limit is maxed out, and the SFSA and tenure conversion factors are the only things moving with rates. Lower rates mean less money since lower rates give higher SFSA’s. This week a Treasury HECM+225 gives $143 more than a HECM+200 (all from a lower SFSA).

This week, all Treasury-based HECM’s with a margin of +332 or less will pay the HECM maximum Principal Limit. Ditto for LIBOR-based HECM’s with margins of +305 or less.

Rates as of 1/6/09 are:

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