There is definately some lag in drops in the conforming rate relative to drops in the 10 year treasury. But the close to 0.2% drop in the Freddie Mac 60 day RNY by late friday afternoon (which dropped along with and actually exceeded drops in treasury yields) will cause rates to drop considerably on monday. I would be surprised if rates dropped by less than a 1/8 of a point on monday for conforming loans. I wouldn’t be surprised to see conforming rates drop to around 5.5% – 5.75% by the end of September barring some miraculous recovery of the stock market prior to that.
