For the week ending 10.12.23, mortgage rates increased 8bp to 7.80%.
For a $100,000 loan, the monthly payment increased $6 to $720/mo or $0.18/day.
Mortgage rates increased 8bp, while the 10-Year Treasury rates decreased 2bp for the week ending 10.12.23. The net difference resulted in a 5bp increase in the spread to 310bp. With the historical spread being 168bp, there now exists a ‘safety cushion’ of 142bp 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 142bp above the historical norm.
Bill Knudson, Research Analyst LANDCO ARESC