FHFA Working Paper 14-2 Figure 10: Other out-of-sample projections after shocking 10-year Treasury interest rates 1-year ARM MBS current coupon rate 3.00 +25 bps 3.00 +15 bps 2.75 +5 bps 2.50 −5 bps −15 bps −25 bps 5.50 5.00 4.50 +10 bps 4.00 +5 bps 4.00 3.50 1.75 3.00 no shock 3.00 −5 bps 2.50 2.00 −10 bps 2.00 1.50 2.00 −20 bps 1.75 +15 bps 6.00 2.50 2.25 −10 bps 2.00 5.00 3.50 no shock 2.25 +20 bps 4.50 +10 bps 2.50 +25 bps 5.50 +20 bps 2.75 6.00 −15 bps 1.50 1.00 −20 bps 0.50 1.00 0.50 −25 bps 1.50 1.50 −10 0 10 20 30 40 days ahead 50 60 0.00 0.00 −10 0 10 20 30 40 days ahead 50 60 Source: Bloomberg. Projections from authors’ calculations. Vertical axes show percentage levels and horizontal axes measure days. 72 S. Patrabansh, W.

Doerner, & S. Asin — The Effects of Monetary Policy on Mortgage Rates .