For the week ending 10.27.22 Mortgage rates INCREASE 12bp to 7.28%.
For a $100,000 loan, the monthly payment INCREASED $8 to $684/mo or $0.26/day.
While mortgage rates INCREASED 12bp, 10 Year Treasury rates DECREASED 28bp. The net difference is a 40bp increase in a spread of 332bp. With the historical spread being 168 there now exists a “safety cushion” of 164bp 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 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.
