Mortgage Rates Decreased 4bp to 6.36% as of 2/2/23

For the week ending 2.2.23 Mortgage rates DECREASED 4bp to 6.32%.

For a $100,000 loan the monthly payment DECREASED $3 to $620/mo or $.09/day.

While mortgage rates DECREASED 4bp, 10 Year Treasury rates DECREASED 9bp. The net difference resulted in an increase of 5bp in the spread to 292bp. With the historical spread being 168 there now exists a “safety cushion” of 124bp 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 an 124bp above historical norm. For this spread to return to the historical norm, either mortgage rates will decrease further or 10 Year Treasury rates will increase.

^{Bill Knudson, Research Analyst LANDCO ARESC}