Why is an inverted spread so important to mortgage rates?
Historically, inversions of the yield curve have preceded many of the U.S. recessions. Due to this historical correlation, the yield curve is often seen as an accurate forecast of the turning points of the business cycle. An inverse yield curve predicts lower interest rates in the future as longer-term bonds are being demanded, sending the yields down. December 3, 2018 saw the first inversion. Get your loan packages in now to take advantage of falling interest rates!