This is the 10-Year T-Note monthly continuation chart. This is the instrument that banks and all lending institutions use to set long-term mortgage rates. There is an inverse relationship between T-Notes and interest rates. As this chart (and T-Notes) go up, mortgage rates go down. We are currently at some of the lowest long-term mortgage rates ever. That is why I am urging you to get these rates locked in. (See ‘Notes From Al’, above.) [Chart source: DTN/ProphetX]
What does this mean for you? If you are borrowing $5,000 per acre to buy a farm, a 1% change in your long-term loan cost can add $50 per acre to your annual land cost.