For the week ending 7.20.23 Mortgage rates decreased 18bp to 7.01%. For a $100,000 loan the monthly payment decreased $12 to $666/mo or $0.40/day.
Mortgage rates decreased 18bp and 10 Year Treasury rates increased 9bp for the week ended 7.20.23. The net difference resulted in a 27bp decrease in the spread to 316bp. With the historical spread being 168, there now exists a “safety cushion” of 148bp above the historical spread.
The historic spread between the 10 Year Treasury and mortgage rates is 168pb (see green line, right axis) and currently, there is a 148bp above historical norm.
Bill Knudson, Research Analyst LANDCO ARESC