For the week ending on 8/24/23, mortgage rates increased by 14 basis points to 7.46%.
For a $100,000 loan, the monthly payment increased by $10 to $696 per month or $0.32 per day.
Mortgage rates increased by 14 basis points, while the 10 Year Treasury rates decreased by 7 basis points for the week ending on 8/24/23. The net difference resulted in a 21 basis point increase in the spread, bringing it to 323 basis points. With the historical spread being 168 basis points, there now exists a “safety cushion” of 155 basis points above the historical spread.
The historical spread between the 10 Year Treasury and mortgage rates is 168 basis points (see green line, right axis), and currently, it is 155 basis points above the historical norm.
Bill Knudson, Research Analyst LANDCO ARESC