For the week ending 9.14.23, mortgage rates increased by 6 bp to 7.41%.
For a $100,000 loan, the monthly payment increased by $4 to $693 per month or $0.14 per day.
Mortgage rates increased by 6 bp, while the 10-Year Treasury rates increased by 2 bp for the week ending 9.14.23. The net difference resulted in a 4 bp increase in the spread, bringing it to 312 bp. With the historical spread being 168 bp, there now exists a ‘safety cushion’ of 144 bp above the historical spread.
The historic spread between the 10-Year Treasury and mortgage rates is 168 bp (see green line, right axis), and it is currently 144 bp above the historical norm.
Bill Knudson, Research Analyst LANDCO ARESC