For the week ending 10.5.23, mortgage rates increased by 18bp to 7.72%.
For a $100,000 loan, the monthly payment increased by $12 to $714 per month or $0.41 per day.
Mortgage rates increased 18bp while the 10-Year Treasury rates increased 15bp for the week ended 10.5.23. The net difference resulted in a 5bp increase in the spread to 300bp. With the historical spread being 168, there now exists a ‘safety cushion’ of 132bp 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 132bp above the historical norm.
Bill Knudson, Research Analyst LANDCO ARESC