For the week ending 11.09.2023, mortgage rates decreased 26bp to 7.73%.
For a $100,000 loan, the monthly payment decreased $18 to $715/mo or $0.60/day.
Mortgage rates decreased 26bp, while the 10-Year Treasury rates decreased 5bp for the week ending 11.09.23. The net difference resulted in a 21bp increased in the spread to 311bp. With the historical spread being 168bp, there now exists a ‘safety cushion’ of 143bp above the historical spread.
The historic spread between the 10-Year Treasury and mortgage rates is 168bp (see green line, right axis), and currently, it is 143bp above the historical norm.
Bill Knudson, Research Analyst LANDCO ARESC