For the week ending 8.3.23 Mortgage rates increased 9bp to 7.13%.
For a $100,000 loan the monthly payment increased $6 to $674/mo or $0.20/day.
Mortgage rates increased 9bp and 10 Year Treasury rates increased 19bp for the week ended 8.3.23. The net difference resulted in a 10bp decrease in the spread to 293bp. With the historical spread being 168, there now exists a “safety cushion” of 125bp 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 125bp above historical norm.
Bill Knudson, Research Analyst LANDCO ARESC