For the week ending 7.13.23 Mortgage rates increased 15bp to 7.19%.For a $100,000 loan the monthly payment increased $10 to $678/mo or $0.34/day.
Mortgage rates increased 15bp and 10 Year Treasury rates decreased 29bp for the week ended 7.13.23. The net difference resulted in a 44bp increase in the spread to 343bp. With the historical spread being 168, there now exists a “safety cushion” of 175bp 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 175bp above historical norm. The last time the excess spread was this large was on 11.10.22 and mortgage rates dropped ~50bp the following week.
Bill Knudson, Research Analyst LANDCO ARESC