For the week ending 10.12.23, mortgage rates increased 16bp to 8.02%.
For a $100,000 loan, the monthly payment increased $11 to $735/mo or $0.37/day.
Mortgage rates increased 6bp, while the 10-Year Treasury rates decreased 12bp for the week ending 10.26.23. The net difference resulted in a 28bp increased in the spread to 316bp. With the historical spread being 168bp, there now exists a ‘safety cushion’ of 148bp 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 148bp above the historical norm.
Bill Knudson, Research Analyst LANDCO ARESC