The average 10-year Treasury rate rose by another 17 bp last week. Today it’s up 5 bp over Friday, but I believe the FED posted too high of a rate on Friday so this says little about next week. The FED’s H15 shows 3.05% for Friday, but the market closed at 2.98%. This happens once in awhile because the FED phones dealers for rates before the markets close.
We’re no longer in territory where the HECM Principal Limit is maxed out. This week, only Treasury-based HECM’s with a margin of +264 or less can pay the HECM maximum Principal Limit. Ditto for LIBOR-based HECM’s with margins of +246 or less. And current margins are higher than these figures. The rates as of 2/10/09 are:
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