July 5, 2010

Mortgage Rates On 30-Year U.S. Loans Slid To A Record Low

Mortgage rates on 30-year U.S. loans slid to a record low for the second straight week, lowering borrowing costs for homebuyers as demand slumps.

Rates for 30-year fixed loans sank to 4.58 percent in the week ended today from 4.69 percent last week, Freddie Mac said in a statement.

In my view, shorting US Treasuries will be the next big macro trade. 2 year bond Yields are also trading at historical lows. They are currently at 0.62% and I ask you, how low can they go?

Related ETFs: iShares Lehman 1-3 Year Treas.Bond (ETF) (Public, NYSE:SHY), iShares Lehman 7-10 Yr Treas. Bond (ETF) (Public, NYSE:IEF)

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