--- title: "The US Ten-Year Treasury: Why Mortgage Professionals Keep an Eye on It" description: Fannie Mae (FNMA) and Freddie Mac (FMCC) are both government-sponsored enterprises (GSEs) that purchase mortgages from lenders, package them into securities, and sell them to investors. However, Fannie Mae primarily focuses on purchasing conventional mortgages (i.e., those not insured or guaranteed by the government), while Freddie Mac focuses on purchasing conforming mortgages (i.e., those that meet certain size and underwriting standards). Both Fannie Mae and Freddie Mac are publicly traded companies.Ginnie Mae (GNMA) is a government agency within the Department of Housing and Urban Development (HUD) that guarantees securities backed by government-insured mortgages, such as FHA and VA loans. Unlike Fannie Mae and Freddie Mac, Ginnie Mae does not purchase mortgages; instead, it guarantees the securities backed by those mortgages, which are issued by private lenders. image: https://www.pointequity.com/hubfs/Chalk%20Board%20Shaped%20Like%20a%20House%20with%20Chart%20on%20It.jpeg --- [![916-248-4620](https://hubspot-no-cache-na2-prod.s3.amazonaws.com/cta/default/4355458/ec1ee27c-25ba-4518-bc57-e8edc9cb7c7e.png)](https://hubspot-cta-redirect-na2-prod.s3.amazonaws.com/cta/redirect/4355458/ec1ee27c-25ba-4518-bc57-e8edc9cb7c7e) [![Apply Now](https://hubspot-no-cache-na2-prod.s3.amazonaws.com/cta/default/4355458/bbb1c79c-b2d0-469c-ac5a-5a51e3eac6df.png)](https://hubspot-cta-redirect-na2-prod.s3.amazonaws.com/cta/redirect/4355458/bbb1c79c-b2d0-469c-ac5a-5a51e3eac6df) [![Point Equity](https://www.pointequity.com/hs-fs/hubfs/Point_Equity_April2018/Images/point_logo3.png?width=120&name=point_logo3.png "Point Equity")](https://www.pointequity.com/) ** [Money Matters](https://www.pointequity.com/blog/tag/money-matters) | 2 MIN READ # The US Ten-Year Treasury: Why Mortgage Professionals Keep an Eye on It August 30, 2024 ![](https://www.pointequity.com/hubfs/Chalk%20Board%20Shaped%20Like%20a%20House%20with%20Chart%20on%20It.jpeg) ![Point Equity](https://www.pointequity.com/hubfs/bridger-white-background-no-circle-1.png) [Written by Point Equity](https://www.pointequity.com/blog/author/point-equity) ![](https://www.pointequity.com/hubfs/Chalk%20Board%20Shaped%20Like%20a%20House%20with%20Chart%20on%20It.jpeg) ![](https://cdn2.hubspot.net/hubfs/2029673/Assets/Search_Image.png) [**](https://twitter.com/share?url=https://www.pointequity.com/blog/the-us-ten-year-treasury/) [**](http://www.linkedin.com/shareArticle?mini=true&url=https://www.pointequity.com/blog/the-us-ten-year-treasury/&summary=&source=CeBIT) [**](http://www.facebook.com/share.php?u=https://www.pointequity.com/blog/the-us-ten-year-treasury/) In the world of mortgages, there are a few key indicators that professionals watch closely to anticipate changes in interest rates. One of the most significant of these is the ten-year U.S. Treasury note. But what exactly is the ten-year note, and why is it so crucial for those in the mortgage industry?  What is the Ten-Year Note? The ten-year U.S. Treasury note is a debt obligation issued by the federal government that matures in ten years. When you buy a Treasury note, you’re essentially lending money to the government. In return, you receive interest payments semi-annually until the note matures; at this point, you get your principal back. The ten-year note is considered one of the safest investments because the full faith and credit of the U.S. government backs it. Why Mortgage Professionals Pay Attention Mortgage rates are not directly tied to the ten-year note, but the two are closely correlated. The yield, or return, on the ten-year note is often used as a benchmark for longer-term interest rates, including mortgage rates. When the yield on the ten-year note rises, mortgage rates tend to follow suit, and mortgage rates typically decline when they fall. Why is this the case? The ten-year note gauges investor sentiment and expectations for inflation and economic growth. When the economy is strong, and inflation rises, investors demand higher yields to compensate for the increased risk of inflation eroding their returns. ![Kid in Glass Hold Toy Home With Chart In Back](https://www.pointequity.com/hs-fs/hubfs/Kid%20in%20Glass%20Hold%20Toy%20Home%20With%20Chart%20In%20Back.jpeg?width=2304&height=1792&name=Kid%20in%20Glass%20Hold%20Toy%20Home%20With%20Chart%20In%20Back.jpeg) Conversely, in times of economic uncertainty, investors flock to the safety of Treasuries, driving yields down. For mortgage professionals, monitoring the ten-year note is crucial because it helps them predict the direction of mortgage rates. If the yield on the ten-year note is trending upward, it may signal that mortgage rates will soon rise, affecting everything from home affordability to refinancing activity.  In Summation   The ten-year note might seem like just another piece of financial jargon, but it’s a key indicator of where rates might be headed for those in the mortgage industry. By understanding its role and closely monitoring its movements, mortgage professionals can better serve their clients and navigate the ever-changing real estate market landscape. IMPORTANT TO REMEMBER: The US Ten Year Treasury is not directly correlated to mortgage rates, but they do tend to follow each other.   [You Can Monitor The 10 Year Yourself - Click Here.](https://www.cnbc.com/quotes/US10Y) ## Related Posts [![](https://www.pointequity.com/hubfs/Man%20Thinking%20of%20Home%20(Blue%20House).png) ](https://www.pointequity.com/blog/psychology-of-home-shopping) ### [The Psychology of Falling Out of Escrow](https://www.pointequity.com/blog/psychology-of-home-shopping) April 15, 2025 [Purchase](https://www.pointequity.com/blog/tag/purchase) | 4 MIN READ [![](https://www.pointequity.com/hubfs/Two%20Boys%20Eating%20Ice%20Cream.png) ](https://www.pointequity.com/blog/speculation-is-hard) ### [Why Predicting Mortgage Rates IS HARD (And What Ice Cream Can Teach Us About It)](https://www.pointequity.com/blog/speculation-is-hard) March 16, 2025 [Purchase](https://www.pointequity.com/blog/tag/purchase) | 4 MIN READ [![](https://www.pointequity.com/hubfs/Wood%20Blocs%20Spelling%202025%20with%20Wooden%20Toy%20House.jpeg) ](https://www.pointequity.com/blog/buying-a-home-in-2025) ### [Buying in 2025 - Some Things to Know if You Plan to Buy a Home in 2025](https://www.pointequity.com/blog/buying-a-home-in-2025) December 31, 2024 [Purchase](https://www.pointequity.com/blog/tag/purchase) | 4 MIN READ ### Subscribe Here! # Free Marketing Resources ### Subscribe to Email Updates [![point_logo](https://www.pointequity.com/hs-fs/hubfs/point_logo.png?width=1849&name=point_logo.png "point_logo")](https://www.pointequity.com) Point Equity Residential Lending 915 Highland Pointe Dr. Suite 160 Roseville, CA 95678   [Local: (916) 248-4620](tel:9162484620) [Toll Free: (888) 551-5110](tel:9995515110) Fax: (916) 914-2306 [info@pointequity.com](mailto:info@pointequity.com) ##### [Buy a Home](https://www.pointequity.com/buy-a-home) ##### [Refinance](https://www.pointequity.com/refinance) ##### [About Us](https://www.pointequity.com/about-us) ##### [Join the Team](https://www.pointequity.com/join-the-team) ##### [Contact Us](https://www.pointequity.com/contact-us) ##### [Resources](https://www.pointequity.com/blog) ### Subscribe to our Newsletter! 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