Insurance Companies’ Response to Increasing Treasury Rates
June 4, 2013
Over the past 3 weeks the 10-year Treasury rate has gone from approximately 1.6% to 2.15%—an increase of 55 basis points. There’s been a lot of discussion in the industry of how insurance companies will respond.
All of the insurance lenders that we represent have adjusted their rates upwards, but most of the increases have not been in lock-step with the Treasury. Of the 5 correspondent insurance companies that I’ve spoken to on the subject, most have upped rates by .125% to .25%. There is still plenty of money to lend, and these organizations want to make sure that capital is being put to good use on solid loans.