For the week ending 9.21.23, mortgage rates increased by 1bp to 7.42%. For a $100,000 loan, the monthly payment INCREASED by $1 to $694 or $0.2 per day.
Mortgage rates increased 1bp while the 10 Year Treasury rates increased 20bp for the week ended 9.21.23. The net difference resulted in a 19bp decrease in the spread to 293bp. With the historical spread being 168 there now exists a “safety cushion” of 125bp above the historical spread.
The historic spread between the 10-Year Treasury and mortgage rates is 168bp (as indicated by the green line on the right axis), which is currently 125bp above the historical norm.
Bill Knudson, Research Analyst LANDCO ARESC