For the week ending 01.04.2024, mortgage rates increased 1bp to 6.62%.
For a $100,000 loan, the monthly payment increased $1.00 to $640/mo or $0.02/day.
Mortgage rates increased 1bp, while the 10-Year Treasury rates increased 15bp for the week ending 01.04.2023. The net difference resulted in a 14bp decrease in the spread to 263bp. With the historical spread being 168bp, there now exists a ‘safety cushion’ of 95bp 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 95bp above historical norm.
Bill Knudson, Research Analyst LANDCO ARESC