For the week ending 2/29/2024, mortgage rates increased 4bp to 6.94%.
For a $100,000 loan, the monthly payment increased $3.00 to $661/mo or $0.09/day.
Mortgage rates increase 4bp, while the 10-Year Treasury rates decreased 8bp for the week ending 02/29/2024. The net difference resulted in a 12bp increased in the spread to 269bp. With the historical spread being 168bp, there now exists a ‘safety cushion’ of 101bp 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 101bp above historical norm.
Bill Knudson, Research Analyst LANDCO ARESC