Fannie Mae 3.0 vrs Interest rate on 10 year note?

The 30 Yr. FNMA 3.0 Mortgage-backed security (MBS) is a group of home mortgages that are sold by the issuing banks and then packaged together into "pools" and sold as a single security. This process is known as "securitization." When homeowners make the interest and principal payments, those cash flows pass through the MBS and flows through to bondholders (minus a fee for the entity that originates the mortgages). Mortgage-backed securities generally offer higher yields than U.S. Treasuries, which is why they are often compared to one another, but they also carry a different set of risks. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

William is right but to understand better on a consumer perspective is to think that MBS somewhat follow Treasuries. Treasuries are safe haven for traders when bad news or news from overseas that can affect the stock market. So traders want safer bets so they put their money into treasuries. But this is not true all the time. For example the Feds just announced they plan on keeping rates low even through recovery and the 10 year rose over the last months from dipping down to 1.45% but rates are still relatively the same. If you were thinking of refinancing or purchasing a home I wouldn't wait. Rates are too good to pass up.Marty310-971-7444I am located in Sherman Oaks so if you need anything I am here to help

William Gave a GREAT answer in a simplistic language.