For the week ending 11.10.22 Mortgage rates INCREASED 16bp to 7.31%.
For a $100,000 loan, the monthly payment INCREASED $11 to $686/mo or $0.35/day
While mortgage rates INCREASED 16bp, 10 Year Treasury rates DECREASED 32bp. The net difference is a 48bp increase in a spread of 349bp. With the historical spread being 168 there now exists a “safety cushion” of 181bp a record HIGH 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 a 164bp 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.