For the week ending 6.30.22 Mortgage rates decreased 8 bps to 5.93%. For a $100,000 loan, the monthly payment decreased by $6 to $595 which is equal to around $20 a day.
30 Year Mortgage Rates
The historic spread (aka difference) between the 10 Year Treasury rates and mortgage rates is 168 bps (as indicated by the green line). This past week the 10 Year Treasury rate DECREASED 11 bps, while Mortgage rates decreased by 8 bps, thus a 3 bps increase in spread occurred. The spread is 127 bps above the historical norm. Given how quickly rates have recently risen, pricing personnel will want to “retain this cushion” to be safe against unexpected rate increases.
Rate Vs. Spread
Bill Knudson, Research Analyst Landco ARESC