Why do people talk about treasury notes when it comes to mortgage rates? Is that only for FHA programs or even normal ones?

Depsite what most people think, the Federal Reserve DOES NOT DIRECTLY control long term interest or mortgage rates. Mortgage rates are directly pegged to the prices of Mortgage Backed Securities (MBS). An MBS is a bond just like a treasury note. The reason people talk about treasury notes in relation to the direction of mortgage rates is because the two bonds (treasury and MBS) tend to move in the same direction and are affected in similar ways by economic data, Since MBS are not readily available to the general public, most people will follow treasurys as away to kepp the pulse ofthe interest rate markets. FHA loans and conventional are affected by MBS prices. So you can use the treasury notes as a barometer for mortgage rates but there is no direct correaltion.