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The relationship between the 10 Year and the 30 Year Mortgage spread and the actual level of the 30 Year Mortgage has broken down in the last week.

The correlation has dropped to zero, meaning the Fed's Open Market purchases in the critical part of the curve may be having less and less of an impact on the ever-critical mortgage rate. Did the (mortgage) vigilantes pull a fast one?

Source: Is the Fed Losing the Mortgage Rate Battle?