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To: Capn Hayek

Thanks. I did not realize that.


35 posted on 09/04/2026 9:10:49 AM PDT by lastchance (Cognovit Dominus qui sunt eius.)
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To: lastchance

No sweat - FWIW?

The tie to the 10 year isn’t a hard and fast rule, but it’s actually a pretty straight-forward and inherently logical thing.

I.e., The overwhelming majority of mortgages are 30 year (something like 90%) BUT, the average “life” of a mortgage? Lots of factors - but it has historically run in the 5 to 8 year range. Currently, I think it’s around 7 years. Meaning - most people either sell (or refinance) around 7 years into a 30 year.

Hence, mortgage lenders aren’t looking to do any favors - they lend predicated on expectations for other uses for the money.

As a consequence? Welp - what (relatively) secure other asset could I put the money in? The 10 yr treasury is simply the best benchmark to use as the alternative “I - the lender - need to make more than this”


39 posted on 09/04/2026 9:43:46 AM PDT by Capn Hayek (Capital is not responsible for Labor's lack of planning)
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