For the week ending 2.01.2024, mortgage rates decreased 6bp to 6.63%.
For a $100,000 loan, the monthly payment decreased $4.00 to $645/mo or $0.13/day.
Mortgage rates decreased 6bp, while the 10-Year Treasury rates decreased 27bp for the week ending 02.01.2024. The net difference resulted in a 21bp increased in the spread to 276bp. With the historical spread being 168bp, there now exists a ‘safety cushion’ of 108bp above the historical spread.
The historic spread between the 10 Year Treasury and mortgage rates is 168pb (see green line, right axis) and currently is 108bp above historical norm.
Bill Knudson, Research Analyst LANDCO ARESC