For the week ending 7.27.23 Mortgage rates increased 3bp to 7.04%. For a $100,000 loan the monthly payment increased $2 to $668/mo or $0.07/day.
Mortgage rates increased 3bp and 10 Year Treasury rates increased 16bp for the week ended 7.27.23. The net difference resulted in a 13bp decrease in the spread to 303bp. With the historical spread being 168, there now exists a “safety cushion” of 135bp 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 135bp above historical norm.
Bill Knudson, Research Analyst LANDCO ARESC