Mortgage Rates up Over 7%

For the week ending 10.20.22 Mortgage rates INCREASE 5bp to 7.17%. For a $100,000 loan, the monthly payment INCREASED from $3 to $676/mo. or $0.10/day.

Lending Rates and Borrowing Costs

While mortgage rates INCREASED 5bp, 10 Year Treasury rates INCREASED 27bp. The net difference is a 22bp decrease in a spread of 293bp. With the historical spread being 168 there now exists a “safety cushion” of 125bp above this historical spread.


The historic spread between the 10 Year Treasury and mortgage rates is 168pb (see the green line, right axis) and currently, there is 147bp above the historical norm. For this spread to return to the historical norm, either mortgage rates will decrease, or 10 Year Treasury rates will increase.

Bill Knudson, Research Analyst Landco ARESC