For the week ending 10.12.23, mortgage rates increased 6bp to 7.86%.
For a $100,000 loan, the monthly payment increased $4 to $724/mo or $0.14/day.
Mortgage rates increased 6bp, while the 10-Year Treasury rates increased 28bp for the week ending 10.19.23. The net difference resulted in a 22bp decrease in the spread to 288bp. With the historical spread being 168bp, there now exists a ‘safety cushion’ of 120bp 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 120bp above the historical norm.
Bill Knudson, Research Analyst LANDCO ARESC